Prices for gold steadied on Friday and were headed for a third straight quarterly gain after a key U.S. inflation report came broadly in line with expectations, boosting hopes that the Federal Reserve may cut interest rates by September.
Spot gold was steady as of noon EDT Friday, at $2,329.25 per ounce. Prices have gained over 4% for the quarter.
U.S. gold futures rose 0.1% to $2,339.80. U.S.
Gold was also buoyed by a decline in the U.S. Treasury yields which makes the non-yielding bullion more attractive for investors.
Market bets rose on Friday that the Federal Reserve will cut interest rates by September and do so again in December after a government report showed inflation by the personal consumption expenditures index (PCE) did not rise at all from April to May.
Traders are currently pricing in about a 68% chance of a rate cut in September, compared with 64% before the release of the inflation data.
Elsewhere, spot silver rose 0.6% to $29.23 and platinum gained 1.4% to $1,001.58 U.S.. Both metals were set for quarterly gains.
Spot palladium rose 5.4% to $979.25 U.S.
