Gold eased on Friday as strong Chinese factory data prompted investors to cash in some of the previous session’s more than 1% gains, while investors weighed up the prospect of more U.S. Federal Reserve rate cuts.
Spot gold was a shade lower at $1,513 per ounce U.S., while U.S. gold futures were unchanged at $1,515.30 per ounce. Spot gold is set to rise about 0.6% on a weekly basis, after a 1% gain the previous week.
A private business surve showed Friday that China’s factory activity expanded at the fastest pace in over two years in October as new export orders rose and plants ramped up production.
The better-than-expected results stand in contrast with an official survey published on Thursday, which showed China’s factory activity shrank for the sixth straight month in October.
Meanwhile, the U.S. Federal Reserve on Wednesday lowered its policy rate by a quarter of a percentage point. But the central bank signaled there would be no further cuts unless the economy takes a turn for the worse.
Among other metals, silver was unchanged at $18.13 U.S. per ounce and platinum inched 0.1% higher to $932.73 U.S., while palladium dipped 0.2% to $1,791.42 U.S. an ounce. Palladium was set to record a fourth straight week of gains.
