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Gold falls on stronger dollar, bond yields
Gold prices fell on Friday, August 30
pressured by a stronger dollar and Treasury yields after U.S. inflation data came in line with expectations.
But gold is on track for a weekly and monthly gain, supported by expectations that the U.S. Federal Reserve will cut interest rates next month.
Spot gold fell 0.2 percent to $2,515.99 an ounce by 1352 GMT, while U.S. gold futures fell 0.4 percent to $2,549.60 an ounce.
The yellow metal is on track for a monthly gain of 3 percent after hitting an all-time high of $2,531.60 an ounce on Aug. 20. It is also expected to gain 0.2 percent for the week.
The U.S. Commerce Department's
personal spending price index rose 0.2 percent last month, in line with economists' expectations, data showed.
Traders have slightly raised their expectations for a U.S. rate cut next month, with a 69% chance of a 25 basis point cut and a 31% chance of a 50 basis point cut, according to CME Group’s FedWatch service.
Elsewhere, spot silver fell 0.6% to $29.27 an ounce, while platinum was flat at $937.70.
Palladium fell 0.3% to $976.50 an ounce, but is up 5% so far this month.
