Prices for gold retreated on Friday from record highs, but were positioned for weekly gains on growing anticipation of another bumper U.S. interest rate cut this year, as markets awaited a key inflation report for additional guidance.
Spot gold slipped 0.1% to $2,667.13 per ounce, holding below previous session’s record peak of $2,685.42. U.S. gold futures dipped 0.2% to $2,689.4.
The Federal Reserve’s larger-than-usual half-percentage-point reduction last week ignited a rally in gold, which hit consecutive record highs and has gained about 1.8% so far this week.
Gold prices are currently supported by anticipated U.S. Fed interest rate cuts and China’s stimulus measures, both of them are weakening the dollar.
The U.S. dollar was down for a fourth straight week, making greenback-priced commodities less expensive for other currency holders.