Gold near a month’s peak thanks to slowing inflation in the US

Gold prices hovered near the highest level in a month on Friday after data indicated a decline in price pressures in the United States, while traders awaited statements from a number of Federal Reserve officials (the US central bank).

According to Reuters, gold rose in spot transactions by 0.2% to $2,047.29 per ounce by 0635 GMT, after reaching $2,050.59 on Thursday, the highest level since February 2.

The precious metal is heading for its second weekly gain in a row, with US gold futures remaining at $2,055.60.

“There was relief in the markets with no bad surprises in the personal consumption expenditures report,” said Matt Simpson, chief analyst at City Index. Gold traders rejoiced at the fact that core personal consumption expenditures slowed year-on-year.”

Data on Thursday showed personal consumption expenditures inflation rose 2.4% in January, the smallest annual increase since February 2021, after rising 2.6% in December.

US central bank officials are focused on overall progress on inflation, which they say will likely pave the way for interest rate cuts later in the year.

Low interest rates enhance the attractiveness of the yellow metal, which does not generate a return.

Investors are awaiting statements from a number of US Central Bank officials later on Friday.

As for other precious metals, platinum in spot transactions rose 0.6% to $881.40 per ounce, and palladium also increased 0.6% to $947.35. But the two metals recorded a decline for the second month in a row, and palladium touched its lowest levels in more than 5 years at $849.13.

Silver rose in spot transactions 0.3% to $22.74 per ounce.