Gold prices were set for a fourth straight monthly gain, even as the market struggled for momentum on Friday ahead of a key U.S. inflation reading that could provide more indications on how the Federal Reserve might proceed with rate cuts later this year.
Spot gold was unchanged at $2,343.63 U.S. per ounce early Friday. Bullion prices are up 0.4% so far this week and 2.5% so far in the month.
U.S. gold futures was flat to $2,341.80.
The market is now waiting for the release of the U.S. core Personal Consumption Expenditures (PCE) price index data, the Fed’s preferred measure for inflation, at 8:30 EDT.
Meanwhile, traders have dialed back rate-cut expectations after Fed officials recently struck a hawkish tone that suggests a longer route to the 2% inflation target.
While bullion is considered an inflation hedge, higher rates increase the opportunity cost of holding the non-yielding asset.
