Gold maintained its yesterday’s gains and even continued slightly upward, against the backdrop of the US inflation announcement.
Spot gold was 0.3 percent higher at $2,339.70 an ounce, while U.S. gold futures rose 0.2 percent to $2,347,290.
The US personal consumption expenditures (PCE) price index rose 0.3% last month, in line with forecasts, a development unlikely to change expectations that the Federal Reserve will keep interest rates cut until September.
The favorite index tracked by Federal Reserve, excluding food and energy, it increased by 2.8% from last year in March, remaining at the same level as in February, the Commerce Ministry announced on Friday. The figure beat the Dow Jones forecast of 2.7%.
US Treasury yields fell after the data was released, making gold more attractive.
The data continues to suggest that “stubborn inflation is likely to remain, but gold’s reaction suggests markets have already priced it in,” said Tai Wong, an independent metals trader based in New York.
In other metals, spot silver fell 0.6% to $27.28 an ounce, platinum lost 0.1% to $915.10 and palladium fell 1.9% to $956.25.
