Gold prices were little changed on Friday but were set for a third straight quarterly rise as investors awaited U.S. inflation data for fresh clues on the Federal Reserve’s stance on interest rates.
Spot gold was trading almost unchanged at $2,328.42 an ounce around 0907 GMT. Prices have gained about 4% in the quarter.
US gold futures rose 0.1% to $2,338.80.
“Gold has managed to hold its own so far and the current consolidation phase is so shallow that hedge funds that bought into the February and March rally have yet to be challenged,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Bullion rose to a record high in May as a cocktail of factors, from rate cut expectations to China’s stimulus measures and geopolitical tensions, boosted demand.
“As long as the metal remains above $2,200, I don’t see any major risk of a forced sell-off phase emerging in the long term. Upcoming data will be key, but overall I don’t see any reason why gold can’t reach $2,500 before the end of the year, supported by multiple drivers,” Hansen added.
U.S. personal consumption expenditures (PCE) figures, the Fed’s preferred measure of inflation, are due at 1230 GMT.
A soft set of PCE figures is required to keep hopes of Fed easing alive and further support gold, said City Index senior analyst Matt Simpson.
Gold rose more than 1% in the previous session after data showed a slowdown in US economic activity.
Meanwhile, Fed Governor Michelle Bowman maintained her stance that she is not yet ready to support a rate cut by the central bank with inflationary pressures still elevated.
Spot silver rose 0.8% to $29.28 and platinum gained 1.8% to $1,005.20. Both metals posted quarterly gains.
Spot palladium rose 3.6% to $962.50.
