Gold Price Advances Modestly Ahead of US PCE Data

SEATTLE (Scrap Monster):  Gold price (XAU/USD) advances modestly on Friday on the back of the softer US dollar (USD) and lower US yields. Traders place higher bets that the Federal Reserve (Fed) will cut the interest rate this year after the recent weaker US GDP data. Furthermore, the geopolitical risks and conflicts in the Middle East might boost the precious metal as it is perceived as a traditional safe-haven asset. 

Later on Friday, gold traders will keep an eye on the US April Core Personal Consumption Expenditures Price Index (Core PCE), the Fed’s preferred inflation measure. The Core PCE figure is projected to show an increase of 0.3% MoM and 2.8% YoY in April.  In case of the hotter-than-expected inflation data, this might provide some support to the Greenback and cap the upside for gold price. 

Courtesy: www.fxstreet.com