Gold prices reduce some weekly gains as expectations for rate cuts diminish

Gold prices fell slightly on Friday, trimming some of their weekly gains as comments from several Federal Reserve officials presented a more cautious outlook on interest rate cuts.The yellow metal had surged to nearly $2,400 an ounce earlier in the week following some weak U.S. economic data. However, it pulled back on Thursday and Friday.Spot gold settled at $2,377.40 an ounce, while June gold futures dipped to $2,381.10 an ounce.Gold retreats as Fed officials downplay rate cuts, but weekly gains remain
Gold prices fell on Thursday after multiple Fed officials warned against expecting immediate interest rate cuts.Several members of the Fed’s rate-setting committee indicated that the central bank needs more substantial evidence of decreasing inflation beyond April’s slightly soft inflation reading.This led traders to reduce expectations for a rate cut in September. The dollar and U.S. Treasury yields also rebounded from earlier losses this week.Despite this, softer-than-expected consumer price index readings put gold on track for a 0.7% weekly gain.Gold remained close to its record high of above $2,430 an ounce, although reaching that level in the near term seemed unlikely.Other precious metals also retreated on Friday but were set for strong weekly gains. Platinum futures fell 0.2% but were up 6.2% for the week, while silver futures declined 0.4% but were up 4.5% for the week.Copper mixed amid middling China data
Among industrial metals, one-month copper futures fell from two-year highs following mixed economic data. However, three-month copper futures rose and were set for a strong week as markets anticipated tighter supplies and eventual demand recovery.Three-month copper futures on the London Metal Exchange increased 0.6% to $10,445.0 a ton, while one-month copper futures rose 0.3% to $4.8935 a pound.Friday’s data from China showed a mixed economic outlook. While industrial production exceeded expectations, retail sales growth slowed, and house prices declined at a faster rate. Growth in Chinese fixed asset investment also decelerated.These mixed readings presented a complicated outlook for the world’s largest copper importer, which is implementing more stimulus measures to boost growth.Three-month copper futures gained on the prospects of a demand recovery and were up nearly 4% this week, reaching two-year highs.