Gold prices rose on Friday, bouncing back from Thursday’s drop. Despite this recovery, the yellow metal is set for a weekly loss due to traders moving toward profit-taking and a generally negative sentiment in the commodities market.
The strong US GDP data for Q2 put downward pressure on gold prices yesterday.
However, market participants are still hopeful that the Federal Reserve will start cutting interest rates in September.
The upcoming release of the PCE Price Index for June could add volatility to gold prices and affect the outlook for US interest rates.
If inflation data comes in lower than expected, gold might rise further while the dollar and Treasury yields could decline. At the same time, traders could continue to monitor gold demand levels in countries such as China and India as well as additional economic data from the region.
Geopolitical risks in the Eastern Europe and the Middle East could continue to affect gold’s performance at the same time as political developments in the US.
