Gold prices climbed on Friday after U.S. inflation data met forecasts, bolstering expectations that the Federal Reserve will move forward with interest rate cuts later this year.
Spot gold rose 0.8% to $3,777.79 per ounce as of 11:04 a.m. EDT (1504 GMT), after touching a record high of $3,790.82 earlier in the week. The metal is up about 2.5% for the week.
“Monthly PCE data is in line, though personal income and spending were a tenth above expectations. Nothing from this data will prevent the Fed from carrying on with another cautious rate cut at the October meeting,” said Tai Wong, an independent metals trader.
The Personal Consumption Expenditures (PCE) price index rose 2.7% year-on-year in August, matching economists’ forecasts in a Reuters poll.
According to the CME FedWatch Tool, investors now see an 88% probability of a rate cut in October and a 65% chance of another in December. Markets are also awaiting comments from Richmond Fed President Thomas Barkin and Fed Vice Chair Michelle Bowman later in the day for further policy signals.
Gold, a traditional safe-haven asset, typically benefits from lower interest rates.
On the trade front, U.S. President Donald Trump announced new tariffs on imported drugs, trucks, and furniture, effective October 1.
Among other precious metals:
- Silver rose 1.2% to $45.76 per ounce, its highest level in over 14 years.
- Palladium gained 1.7% to $1,271.46, heading for a weekly rise.
- Platinum surged 2.7% to $1,570.45, its strongest level in more than 12 years.
Analysts noted that silver and platinum are drawing investor interest as cheaper alternatives amid soaring gold prices.
Wong added that demand for silver is being boosted by China’s pledge to cut net carbon emissions by 7–10% by 2035, which supports solar cell usage, while sentiment was also lifted by Freeport’s force majeure at the Grasberg copper mine.
