NEW YORK: Gold rose on Friday after a sharp fall one day earlier, helped by a slight retreat in the dollar as signs of cooling US inflation raised bets that the Federal Reserve will likely end its monetary tightening cycle.
Spot gold was up 0.75% at $1,959.53 per ounce by 2:15 p.m. ET (1815 GMT). US gold futures settled 0.8% higher at $1,960.40.
US annual inflation slowed considerably in June, data released on Friday showed. Inflation as measured by the personal consumption expenditures (PCE) price index increased 0.2% last month, according to the Commerce Department.
Rising interest rates makes holding gold less appealing to investors since bullion yields no interest.
“The core PCE, which is what the Fed really looks at, came in line with estimates. It really wasn’t much of a surprise. Also, the dollar is weaker today and is giving a bit of a boost for gold,” said Edward Meir, a metals analyst who provides research for Marex.
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