Spot Gold traded not far from a fresh all-time high of $2,685.64 per troy ounce on Friday, as market players awaited the key US PCE inflation figures for more guidance on the Federal Reserve’s interest rate trajectory.
Annual core PCE inflation probably remained steady at 2.6% in August, according to market consensus, while annual PCE inflation probably eased to 2.3% from 2.5% in July.
Yet, robust GDP data released on Thursday, to an extent, challenged expectations of an aggressive monetary policy easing cycle.
Final data revealed the US economy had expanded at an annualized rate of 3% in the second quarter of 2024, following a revised up 1.6% growth in Q1.
Additionally, the number of initial jobless claims unexpectedly dropped to 218,000 during the week ending September 21st, to mark a fresh four-month low.
Markets are now pricing in about a 49% chance of another 50 basis point rate cut at the Fed’s policy meeting in November.
China’s stimulus measures this week also provided certain support for Gold.
As of 7:24 GMT on Friday Spot Gold was edging down 0.26% to trade at $2,665.35 per troy ounce.
A technical correction is likely underway, with the daily Relative Strength Index signaling overbought conditions.
Gold Futures for delivery in December were down 0.35% on the day to trade at $2,685.40 per troy ounce.
The US Dollar Index, which reflects the relative strength of the greenback against a basket of six other major currencies, was edging up 0.13% to 100.701 on Friday.
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