WASHINGTON (dpa-AFX) - Gold prices reversed course on Friday after seven successive sessions of gains amidst concerns about inflation as well as sticky core inflation ahead of a key inflation update from the U.S. Latest data on the Fed's preferred PCE-based inflation for August are due for release on Friday morning.
The year-on-year PCE Price Index is seen falling to 2.3 percent from 2.5 percent in the previous month. The core component thereof is however seen edging up to 2.7 percent from 2.6 percent in the previous period. The month-on-month PCE price index is seen edging down to 0.1 percent from 0.2 percent in the previous month. The core component thereof is however seen steady at 0.2 percent.
The CME FedWatch tool reveals that markets continue to overwhelmingly expect another Fed rate cut in November, with a 51 percent probability for a 25 basis points cut and a 49 percent probability for a rate cut of 50 basis points.
Gold Futures for December settlement has slipped 0.26 percent to trade at $2,688.00, versus the previous close of $2,649.90. The day's trading range has been between $2,680.85 and $2,696.35 as compared with the 52-week trading that ranged between $1,842.5 and $2,708.7.
Spot Gold slipped 0.21 percent to trade at $2,666.81 per troy ounce. The day's trading range has been between $2,658.48 and $2,674.06. Spot Gold had ranged between $1810.1 and $2685.96 over the past 52 weeks.
At current prices, both Spot Gold and Gold Futures have gained more than 42 percent over the past year.
On Thursday, Gold Futures for December settlement had touched a record high of $2,708.70 and Spot Gold had touched an all-time high of $2,685.96 in the aftermath of the jumbo rate cut by the Fed as well as lingering hopes of further easing.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
