Gold prices are rising ahead of the Fed’s closely watched inflation gauge

Gold prices edged higher on Friday as investors awaited key US inflation data a week from now that would see the precious metal modest gains at best.

gold for June delivery GC00,

was up 0.5% or $10.10 to $1,856.70 an ounce after rising 0.1% to $1,847.60 an ounce on Thursday. Gold was up 0.8% on the week. silver SI00,

rose 1.3% to $22.26 an ounce, a day after rising 0.5% to $21.97 an ounce.

Gains for gold reflected similarly tepid progress for US stock index futures ES00,
ahead of a slew of economic data, including the Federal Reserve’s favorite indicator of inflation, the key personal spending index deflator.

US core PCE is expected to have risen 4.9% annually in April, down from 5.2% in March, according to economists polled by Dow Jones Newswires and The Wall Street Journal.

This data will be available at 8:30 am Eastern time along with disposable income and consumer spending for the same month and drive international trade in goods.

US stocks are heading for weekly gains of between 3% and 4% amid some relief from the release of Federal Reserve meeting minutes in early May. The Fed reiterated expectations of a half-point hike in interest rates over the summer to fight inflation, but also indicated that it would remain flexible afterwards to re-evaluate the economy.

The minutes didn’t really reveal much new, and gold’s sideways movement this week versus firmer gains for other assets shows that demand is currently lacking, Daniel Briesemann, a research analyst at Commerzbank, told clients in a note.

“We’ve seen renewed outflows from gold ETFs over the past two days, which means gold hasn’t received any stimulus from financial investors,” he said.

Gold’s gain on Friday came amid slightly weaker tone versus the Dollar DXY,

“Gold remains bid above the 200-day moving average [daily moving average] ($1842 an ounce), but upward momentum is fading as rising risk appetite shifts capital to riskier, higher-yielding assets,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank, in a note to clients.

Among others platinum PLN22,
up 0.6% to $943.40 an ounce, while palladium PAM22,
rose 0.9% to $2,012.50 an ounce.

copper HG00,
Prices rose 0.5% to $4.28 a pound. Gold prices are rising ahead of the Fed’s closely watched inflation gauge

Brian Lowry

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