BENGALURU-Gold prices steadied on Friday and were headed for a third straight quarterly gain after a key US inflation report was broadly in line with expectations, boosting hopes that the Federal Reserve could cut interest rates by September.
Spot gold was steady at $2,326.47 per ounce. Prices have gained over 4 percent for the quarter.
US gold futures settled 0.1 percent higher at $2,339.6.
“We are continuing on trend in a very incremental slow pullback of inflation. As a result, we’ve seen yields continue to creep lower, bonds creep higher and that is somewhat supportive for the gold market,” said David Meger, director of alternative investments and trading at High Ridge Futures.
Gold was also supported by a decline in the US Treasury yields, which makes the non-yielding bullion more attractive for investors.
On Friday, market bets rose on hopes that the Federal Reserve would cut interest rates by September and again in December, after the Personal Consumption Expenditures Index showed inflation did not rise at all from April to May.
