Gold prices are set to achieve a third consecutive week of gains this Friday, after data showed a slowdown in inflation bolstered bets on interest rate cuts in the United States. Traders are awaiting comments from Federal Reserve Chairman Jerome Powell later today. Gold in spot transactions rose by 0.2% to $2,039.42 per ounce by 04:27 GMT, after recording an increase of over $60 in November, marking the second monthly increase in a row. U.S. gold futures for February delivery increased by 0.1% to $2,059.00.
Data released on Thursday indicated that U.S. consumer spending rose modestly in October, while the year-on-year inflation increase was the lowest in more than two and a half years. The decline in inflationary pressures and a weakening labor market pave the way for an end to the rate hike cycle and enhance the possibility of interest rate cuts in the coming months. Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
For other precious metals, silver in spot transactions rose by 0.2% to $25.29 per ounce, platinum fell by 0.1% to $925.67, and palladium increased by 0.6% to $1,013.52 per ounce.
