Gold Prices Gain Momentum Amid US Economic News

30 Aug 2024 , 10:01 AM

Gold prices were slightly changed on Friday, but were on track for a monthly gain on expectations of a US interest rate cut in September, as traders awaited vital US inflation data for more insight.

Spot gold was down 0.1% at $2,517.91 per ounce, on track for its second consecutive monthly rise of around 3%.

U.S. gold futures dropped 0.4% to $2,551.20.

In the previous quarter, the U.S. GDP grew at a 3.0% annualised pace, up from 2.8% reported previous month, while consumer spending increased to 2.9%, from 2.3%.

A separate report showed weekly initial jobless claims fell to 231,000 last week, slightly lower than the 232,000 estimate of economists surveyed by Reuters.

The CME FedWatch tool shows that traders have fully priced in a Federal Reserve rate decrease next month, with a 66% chance of a 25-basis-point cut and a 34% possibility of a larger 50-basis-point reduction.

Market participants are now keeping an eye out for Personal Consumption Expenditures (PCE) data, the Fed’s preferred inflation indicator, which is due later in the day to assess the central bank’s policy outlook.

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