Gold prices edged lower on Friday and were set for a weekly decline as investor attention turned to key US inflation data for cues on the Federal Reserve’s interest rate trajectory.

Gold price per tola increases Rs500 in Pakistan

Fundamentals

• Spot gold dipped 0.1% to $2,331.15 per ounce as of 0136 GMT.

• Prices are down nearly $100 from the all-time high of $2,431.29 scaled on April 12, fuelled by geopolitical turmoil.

• Bullion prices are down 2.5% so far for the week.

• US gold futures were unchanged at $2,343.50 per ounce.

• Markets are awaiting US March personal consumption expenditure (PCE) data - the Fed’s preferred inflation gauge - due at 1230 GMT.

• The US economy grew at its slowest pace in nearly two years in the first quarter but an increase in inflation reinforced expectations the Fed would not cut interest rates before September.

• Recent remarks from Fed officials hinted the central bank was in no hurry to cut rates.

• Higher rates reduce the appeal of holding non-yielding gold.

• Top consumer China’s net gold imports via Hong Kong jumped 40% in March from the previous month, data showed.

• JP Morgan said on Thursday that gold’s structural bull case remains intact, with a peak target of $2,600.

• Newmont Corp beat Wall Street estimates for first-quarter profit as the world’s largest gold miner benefited from robust production, higher prices and lower operating expenses.

• Elsewhere, the Bank of Japan is set to project inflation will stay near its 2% target in the coming years and signal its readiness to raise rates from near-zero in the hope of keeping yen bears from pushing the currency to fresh 34-year lows.

• Spot silver fell 0.1% to $27.40 per ounce, platinum was up 0.6% at $919.90, while palladium gained 1.1% to $984.73.