Precise Investors Editorial Team
Bullion has added 3.9% so far this month and reached its highest level of $3,423.16 since July 23
Gold prices were on track for a monthly gain on Friday after striking a more than one-month peak in the previous session, supported by an overall softer dollar and increased expectations for a U.S. interest rate cut in September.
Spot gold was down 0.3% at $3,408.26 per ounce, as of 0430 GMT, due to profit taking. Bullion has added 3.9% so far this month and reached its highest level of $3,423.16 since July 23 on Thursday.
The dollar was set for a monthly drop, making gold less expensive for holders of other currencies.
The precious metal remains a popular pick with investors ahead of what is expected to be a period of looser monetary policy in the U.S. starting next month, said KCM Trade chief market analyst, Tim Waterer.
U.S. Fed Governor Christopher Waller on Thursday stepped up his call for cutting short-term U.S. borrowing costs, saying he would support an interest-rate cut next month and further reductions over the next three to six months.
Traders say there is an 86% probability of a 25-basis-point rate cut at the Fed’s policy meeting next month, according to the CME FedWatch Tool.
Investors are now awaiting the release of the PCE Price Index in the U.S., the Fed’s preferred inflation measure, due later in the day, for further cues on the U.S. central bank’s interest rate trajectory.
If we see core PCE come in steady at 0.3% for the month, this will keep things on track as far as expected rate cuts from the Fed is concerned, Waterer said.
Meanwhile, Fed Governor Lisa Cook filed a lawsuit on Thursday claiming the country’s president has no power to remove her from office.
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