Home Business News Gold prices rebound amid easing inflation

Gold prices increased on Friday, yet remained within a narrow range on course for their first weekly gain following the release of the US Producer Price Index (PPI) data, which provided further evidence of easing inflation.

This came after the Consumer Price Index (CPI) data also suggested a softening in inflation figures. These developments have maintained the anticipation of a potential Federal Reserve rate cut in September.

Despite earlier data suggesting lower-than-expected inflation, the Federal Reserve has tempered any immediate expectations for rate cuts. Moving forward, the markets will be closely monitoring comments from Fed officials starting today and into the next week for further direction.

While a strong US dollar could limit a significant recovery in gold prices, decreasing US Treasury yields might offer some support. Additionally, gold is likely to continue to benefit from the ongoing political uncertainty with upcoming elections in Europe and the US.

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