Gold gains 1% on dollar weakness as focus turns to US PCE data
US dollar down 0.2%
US PCE numbers due on Friday
Updates prices
By Harshit Verma
June 27 (Reuters) -Gold prices rose more than 1% on Thursday from the over two-week low touched in the previous session, as the dollar softened and the spotlight shifted to key U.S. inflation data for clues on the Federal Reserve's policy path.
Spot gold XAU= was up 1.2%, at 2,324.53 per ounce as of 1804 GMT, after falling to its lowest level since June 10 on Wednesday.
U.S. gold futures GCcv1 settled 1% higher, at $2,336.6.
"Some of the data that came out was supportive to the gold market. It was essentially the wholesale inventories that came in lower than expected. The final GDP figure is significantly lower. So gold futures are getting a boost on dollar index coming off," said Phillip Streible, chief market strategist at Blue Line Futures.
Ebbing economic momentum was underscored by data showing business spending on equipment declined in May, while a slump in exports pushed up the goods trade deficit. In its third estimate of gross domestic product for the January to March quarter, the government confirmed that economic growth moderated sharply in the first quarter.
Making gold more attractive for other currency holders, the dollar =USD weakened 0.2%against a basket of currencies, while benchmark 10-year yields US10YT=RR fell to 4.2845%.USD/ US/
Investors have largely stuck to their view of around two interest-rate cuts this year, according to LSEG's FedWatch data, even though the U.S. central bank has projected only one. FEDWATCH
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Data for the Personal Consumption Expenditures Price Index (CPE), a key inflation report and the Fed's preferred inflation gauge, is due on Friday.
Markets were also on alert for signs of Japanese authorities intervening in the yen as it languished near a 38-year low. Economic uncertainty tends to boost bullion's appeal.
Spot platinum XPT= was down 2.2%, at $988.75, while palladium XPD= was steady at $929.00 and silver XAG= gained 0.5%, to $28.90.
Spot gold price in USD per oz https://reut.rs/3W2tn75
Reporting by Harshit Verma and Daksh Grover in Bengaluru; Editing by Vijay Kishore and Pooja Desai
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