Gold prices dip but remain on track for second consecutive monthly gain

Shafaq News/ Gold prices edged lower on Friday, but the metal is set to record its second consecutive monthly gain as expectations rise that the US Federal Reserve may cut interest rates next month. Traders are also awaiting key inflation data from the United States.

Spot gold fell 0.3% to $2,513.70 per ounce by 0543 GMT. Despite the decline, gold is on track to achieve nearly a 3% monthly gain.

US gold futures dropped 0.5% to $2,547.10 per ounce.

According to the CME Group's FedWatch tool, traders are currently pricing in a 66% chance of a 25 basis point rate cut by the US Federal Reserve next month and a 34% chance of a 50 basis point cut.

These probabilities could be influenced by the US Personal Consumption Expenditures (PCE) data, which is set to be released at 1230 GMT.

Data released on Thursday showed that US weekly jobless claims fell slightly last week, though re-employment opportunities for those who lost their jobs have become scarcer.

On the geopolitical front, a senior World Health Organization official stated on Thursday that the Israeli military and Hamas agreed to three separate temporary ceasefires in specific areas of Gaza, each lasting three days, to allow polio vaccination campaigns. However, tensions remain high amid fears of escalating conflict in the region.

Among other precious metals, spot silver was steady at $29.44 per ounce, while palladium rose 0.1% to $981.00. Both metals are on track for monthly gains.

Platinum gained 0.8% to $945.10 per ounce but is heading for its third consecutive monthly loss.