Gold Prices Fluctuate Amid Fed Rate Cut Expectations

Gold prices have shown volatility, recently easing but still on track for a monthly gain due to rising expectations of a Federal Reserve rate cut next month. As of Friday, spot gold was down slightly to $2,502.32 per ounce, following a peak of $2,531.75 the previous week. Investors are closely monitoring U.S. inflation data, particularly the Personal Consumption Expenditures (PCE) index, to gauge the potential size of the anticipated rate cuts, with a 67% likelihood of a 25-basis-point reduction. Geopolitical tensions and strong demand for gold as a safe investment amid economic uncertainties have contributed to its overall bullish trend, with analysts predicting prices could surpass $2,800 by year-end. Meanwhile, other precious metals like silver and platinum also experienced gains, reflecting a broader trend in the commodities market.