Though odds of the US Federal Reserve cutting interest rates next month increasing, traders await news on inflation in the United States. Gold prices fell on Friday but are going towards achieving monthly increases for the second consecutive straight.
Down 0.3 percent at $2,513.70 an ounce by 0543 GMT was spot gold. This month the yellow metal is on target to rise almost 3 percent.
US gold futures dropped 0.5 percent, landing at $2,547.10 an ounce.
With a 66% chance of a 25 basis point decrease and a 34% possibility of a 50 basis point drop, traders anticipate a U.S. rate cut next month according to the FedWatch tool of the CME Group.
Due at 1230 GMT, the US personal consumption spending statistics could influence these possibilities.
Thursday’s data revealed that although chances for re-employment for those who lost their jobs became increasingly rare, weekly applications for unemployment benefits in the United States dropped somewhat last week.
Geopolitally, a top World Health Organisation official stated yesterday that Hamas and Israeli military have agreed to three different brief three-day truces in particular parts of Gaza to enable polio vaccination programs.
Still, tensions remain high given worries about a more general war in the area.
Among other precious metals, palladium climbed 0.1 percent to $981 while spot silver was steady at $29.44 an ounce. Both metals are headed for monthly increases.
Platinum dropped 0.8 percent to $945.10, nearing its third consecutive monthly loss.
