GOLD prices edged lower on Friday (Apr 26) and were set for a weekly decline as investor attention turned to key US inflation data for cues on the Federal Reserve’s interest rate trajectory.

Spot gold dipped 0.1 per cent to US$2,331.15 per ounce as at 0136 GMT. Prices are down nearly US$100 from the all-time high of US$2,431.29 scaled on Apr 12, fuelled by geopolitical turmoil.

Bullion prices are down 2.5 per cent so far for the week.

US gold futures were unchanged at US$2,343.50 per ounce.

Markets are awaiting US March personal consumption expenditure data – the Fed’s preferred inflation gauge – due at 1230 GMT.

The US economy grew at its slowest pace in nearly two years in the first quarter but an increase in inflation reinforced expectations the Fed would not cut interest rates before September.

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Recent remarks from Fed officials hinted the central bank was in no hurry to cut rates.

Higher rates reduce the appeal of holding non-yielding gold.

Top consumer China’s net gold imports via Hong Kong jumped 40 per cent in March from the previous month, data showed.

JP Morgan said on Thursday that gold’s structural bull case remains intact, with a peak target of US$2,600.

Newmont beat Wall Street estimates for first-quarter profit as the world’s largest gold miner benefited from robust production, higher prices and lower operating expenses.

Elsewhere, the Bank of Japan is set to project inflation will stay near its 2 per cent target in the coming years and signal its readiness to raise rates from near-zero in the hope of keeping yen bears from pushing the currency to fresh 34-year lows.

Spot silver fell 0.1 per cent to US$27.40 per ounce, platinum was up 0.6 per cent at US$919.90, while palladium gained 1.1 per cent to US$984.73. REUTERS