Investing.com-- Gold prices rose in Asian trade on Friday but were nursing steep losses through the week as traders remained largely biased towards the dollar before more cues on interest rates in the coming days.
The yellow metal briefly hit record highs in July, before a mix of profit-taking and volatility in commodity markets saw prices fall sharply.
Spot gold rose 0.3% to $2,371.23 an ounce, while gold futures expiring in August rose 0.7% to $2,369.90 an ounce by 00:43 ET (04:43 GMT).
Gold heads for weekly loss with PCE data, Fed on tap
Spot prices were down 1.2% this week, having initially fallen much further on Thursday after stronger-than-expected second-quarter gross domestic product data from the U.S.
The reading ramped up hopes for a soft landing for the U.S. economy- a scenario that could lessen safe haven demand for gold.
Still, traders largely maintained their bets on a September rate cut by the Federal Reserve, with upcoming PCE price index data- the Fed’s preferred inflation gauge- likely to factor into the outlook for rates.
The reading is expected to show inflation eased further in June, albeit mildly. It also comes just days ahead of a Fed meeting where the central bank is widely expected to keep rates steady and signal a rate cut in September.
Lower rates bode well for gold and precious metals, given that they reduce the opportunity cost of investing in non-yielding assets.
The yellow metal may also see increased safe haven demand as the U.S. presidential race heats up, with recent polls indicating a close race between Republican nominee Donald Trump and Democratic frontrunner Kamala Harris.
Other precious metals were mixed on Friday, but were also nursing steep losses this week. Platinum futures rose 0.4% to $948.0 an ounce, while silver futures fell 0.3% to $27.890 an ounce. Platinum was down 2.7% this week, while silver was nursing a nearly 5% slump.
Copper steadies but set for third week in red on demand fears
Among industrial metals, copper prices steadied on Friday, but were nursing a third straight week in red amid persistent concerns over sluggish demand, especially in top importer China.
Benchmark copper futures on the London Metal Exchange steadied at $9,123.50 a tonne, while one-month copper futures rose 0.2% to $4.1250 a pound. Both contracts were down 2% and 2.6%, respectively, this week.
The red metal saw some relief on the strong U.S. GDP reading, while a slew of surprise interest rate cuts in China also stemmed copper’s decline.