Gold prices slip ahead of Fed’s preferred inflation gauge

Gold bars

Gold futures edged lower on Friday but remained on track for monthly gains of around 4%, as investors awaited the release of the Federal Reserve’s preferred inflation gauge later today for further clues on the path of US interest rates.

December gold futures fell 0.2% ($6.50) to $3,467.80 an ounce.

Spot gold dropped 0.25% ($8.75) to $3,408.33 an ounce as of 8:31 am Makkah time.

Meanwhile, the US Dollar Index—which tracks the greenback against a basket of six major peers—rose 0.2% to 97.99.

December silver futures (the most active contract) gained 0.55% to $39.49 an ounce. Spot platinum fell 0.7% to $1,354.02, while spot palladium declined 0.3% to $1,104.58.

On Thursday, Fed Governor Christopher Waller called for cuts in short-term borrowing costs in the US, expressing support for a rate reduction next month, with the possibility of further cuts over the next three to six months, Reuters reported.

Markets expect the core Personal Consumption Expenditures (PCE) price index—which excludes volatile food and energy costs—to hold steady at 0.3% this month.