Mumbai, 28 Jun (Commoditiescontrol): Gold prices edged lower on Friday but remained poised for their third consecutive quarterly gain, as investors awaited key U.S. inflation data that could shed light on the Federal Reserve's interest rate strategy.
Spot gold fell 0.3% to $2,321.39 per ounce, though it has gained about 4% over the quarter. The precious metal remained largely unchanged for the week and the month. U.S. gold futures also slipped, down 0.2% to $2,332.10 per ounce.
A strengthening dollar, which rose 0.2%, made gold more expensive for holders of other currencies, while benchmark 10-year Treasury yields also edged higher.
Market participants are closely watching the personal consumption expenditures (PCE) price index report, due at 1230 GMT, for clues on the Federal Reserve's potential interest rate cuts this year.
Recent data has pointed to a slowing economic momentum, with business spending on equipment declining in May and a widening goods trade deficit driven by a slump in exports. The government confirmed in its third estimate of GDP for the first quarter that economic growth had moderated sharply.
Despite these signs of economic slowdown, U.S. Federal Reserve Governor Michelle Bowman reiterated on Thursday that she is not yet ready to support a rate cut, citing continued inflationary pressures.
Higher interest rates generally increase the opportunity cost of holding non-yielding assets like gold, potentially weighing on its prices.
In other precious metals, spot silver fell 0.5% to $28.91 per ounce. Platinum rose 0.7% to $994.42 per ounce, while palladium gained 1.5% to $943.22 per ounce.
(By Commoditiescontrol Bureau: 09820130172)
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