Gold prices eased on Friday, but were on track for a second straight month of gains on rising bets of a Federal Reserve rate cut next month, while traders awaited key U.S. inflation data for additional guidance.
Spot gold was down 0.3% at $2,513.99 per ounce as of 0333 GMT, but on track to have increased about 3% this month.
U.S. gold futures fell 0.5% to $2,547.60.
The “overall trend in gold remains bullish due to lower rates and geopolitical tensions,” said Peter Fung, head of dealing at Wing Fung Precious Metals.
“By year-end, prices should break $2,650 and in the medium to long term, expect it to go above $2,800 and maybe even $3,000.”
Currently, traders have fully priced in a U.S. rate cut next month, with a 66% chance of a 25-basis-point reduction and a 34% chance of a 50-bps cut, according to the CME FedWatch tool.
Those odds could be influenced by U.S. …