Gold rises following weak US data.

NEW YORK: Gold extended gains on Friday, supported by a softer dollar and Treasury yields after U. economic data indicated a slowdown in inflation. However, the Federal Reserve’s hawkish interest rate outlook kept bullion on track for a weekly loss. Spot gold was up 0.8% at $2,614.67 per ounce, of 9:42 a.m ET1442), and U.S. gold futures climbed 1% higher to $2,.20.

The dollar declined by 0.4% its two-year, reducing the cost of gold for international buyers, while Treasury yields decreased from their over six-month. The indicated that monthly inflation decelerated in November after showing improvement in months. The personal consumption expenditures (PCE) price index increased by 0.1% last month following an unchanged .2% rise in October.

“Not only did the PCE, the personal income data, and the personal spending data come out than but are also seeing people to the gold and re-establish positions,” Phillip Streible chief market at Blue Line Futures “Now, all of a sudden, the dramaticoff in gold caused by the of two interest rate cuts is being reversed by the possibility of interest cuts a more accommodative policy. However, it is still too soon to tell.”

Bullion declined by 1.% this week following the Federal Reserve’sdot” on Wednesday which indicated two 25-basis-point rate cuts 2025, suggesting easing than anticipated in September.

Higher interest rates increase the opportunity cost of holding gold which does not yield any interest. “With physical demand holding a floor for now, we are heading into 2025 with relatively low Fed cut expectations, which could fuel gold gains inflationary fears end up overblown, allowing the Fed more maneuver,” JP Morgan in a.