Gold Maintains Near One-Month High as US Inflation Slows

 Gold Maintains Near One-Month High as US Inflation Slows

Gold Maintains Near One-Month High as US Inflation Slows

Gold prices hovered near a one-month high on Friday as data suggested easing U.S. price pressures, providing reassurance to investors anticipating a potential interest rate cut by the Federal Reserve in June.

Spot gold edged up 0.1% to $2,044.60 per ounce, as of 0808 GMT, following Thursday’s peak of $2050.59 – the highest level since Feb. 2. Bullion was on track for a second consecutive weekly gain.

US gold futures remained steady at $2,053.00.

Money market pricing indicates that traders are factoring in three quarter-point U.S. rate cuts for 2024.

Investors will be attentive to remarks from at least six more Fed officials expected later on Friday.

The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, saw a 3.3% decline in holdings in February and a 6.4% drop so far this year.

“Although negative ETF flows are capping gold prices, China’s central bank remains a key supporter, being the second highest purchaser of gold reserves in the fourth quarter,” Simpson noted.

Spot platinum dipped 0.2% to $871.06 per ounce, while palladium slipped 0.3% to $939.12. Both metals registered a second monthly decline, with palladium touching more than five-year lows of $849.13.

Platinum group metals producer Impala Platinum stated that it might consider closing some of its unprofitable South African mining operations if metal prices deteriorate further and restructuring efforts fail to enhance margins.

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