Gold hovers near one-month peak on slowing US inflation

Gold prices hovered near a month high on Friday after data suggested easing U.S. price pressures, reassuring investors vouching for a June interest rate cut by the Federal Reserve.

Spot gold edged 0.1% higher to $2,044.60 per ounce, as of 0808 GMT, after hitting $2050.59 on Thursday – its highest level since Feb. 2. Bullion was headed for a second consecutive weekly gain.

US gold futures were flat at $2,053.00.

Money market pricing shows traders are pricing in three quarter-point U.S. rate cuts for 2024.

Investors will watch out for remarks from at least six more Fed officials due later on Friday.

The world’s largest gold-backed exchange-traded fund, SPDR Gold Trust’s holdings fell 3.3% in February and 6.4% so far this year.

“Whilst negative ETF flows are capping gold prices, China’s central bank is a key reason that gold prices remain supported, as they were the second highest purchaser of gold reserves in the fourth quarter,” Simpson said.

Spot platinum fell 0.2% to $871.06 per ounce, and palladium dropped 0.3% to $939.12. Both posted a second monthly decline, with palladium touching more than five-year lows of $849.13.

Platinum group metals producer Impala Platinum said it could shut some of its loss-making South African mining operations if metal prices deteriorate further and restructuring efforts fail to improve margins.