Gold prices carry on weekly decline as inflation concerns recede
Date
7/28/2024 5:28:20 AM
(MENAFN) Gold prices fell for the second consecutive week, although gold futures saw gains during Friday's trading, recovering from the previous session's losses. On Friday, gold prices rebounded as investors digested economic data indicating a slowdown in inflationary pressures in the United States. At the close of trading on Friday, gold futures for August delivery increased by 1.15 percent, or USD27.5, to reach USD2,381 an ounce. Despite this daily gain, the yellow metal experienced a weekly loss of 0.75 percent, marking its second week of decline.
Market analyst Fawad Razaqzada from Forexnoted that mixed to weak U.S. economic data on Friday suggested easing inflationary pressures and a slowdown in economic activity. This development supports the possibility of the Federal Reserve cutting interest rates twice this year. Federal Reserve policymakers received new signs of progress in curbing inflation, raising expectations that they might announce interest rate cuts in their upcoming meeting, with reductions potentially starting in September. Lower interest rates decrease the cost of holding non-yielding bullion, making gold a more attractive investment.
The U.S. Commerce Department's Bureau of Economic Analysis reported that the personal consumption expenditures price index rose by 0.1 percent in the past month, following no change in May. This data release led to a drop in the 10-year Treasury yield, which fell to its lowest level in a week.
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