Gold prices eased on Friday but were set for a third straight quarterly rise as investors awaited U.S. inflation data for insights on the Federal Reserve’s interest rate-cut timeline. Spot gold fell 0.3% to $2,321.18 per ounce, while U.S. gold futures dropped 0.2% to $2,331.90. Prices have increased about 4% this quarter.
“Gold is up on the quarter, largely due to the increased scope for U.S. monetary easing and significant purchases by China,” said Ilya Spivak, head of global macro at Tastylive. Despite China’s reserves being flat in May, a World Gold Council survey indicated potential increases in central bank gold reserves within 12 months.
Gold rose over 1% in the previous session amid a moderate U.S. economic slowdown. The market sees a 64% chance of a Fed rate cut in September. However, Fed Governor Michelle Bowman expressed reluctance to support a cut due to persistent inflation pressures.