* Bullion up about 4% for the quarter
* U.S. PCE data due at 1230 GMT
* Silver and platinum set for quarterly gains
June 28 (Reuters) – Gold prices eased on Friday, but
were set for a third straight quarterly rise, while investors
look forward to U.S. inflation data due later in the day for
more clarity on the Federal Reserve’s interest rate-cut
timeline.
Spot gold was down 0.3% at $2,321.18 per ounce, as of
0354 GMT. Prices have gained about 4% for the quarter.
U.S. gold futures fell 0.2% to $2,331.90.
“Gold is up on the quarter, largely as the scope for
monetary easing in the U.S. has increased … China also bought
large amounts of gold for their reserves, which helped offer
support in the second quarter,” said Ilya Spivak, head of global
macro at Tastylive.
After adding to its gold reserves for 18 consecutive months,
official data from the People’s Bank of China (PBOC) showed its
holdings were flat in May. A survey by the World Gold Council,
however, found that more central banks may increase gold
reserves within 12 months.
Gold rose more than 1% in the previous session after data
showed a continued, though moderate, slowdown in U.S. economic
activity. Currently, the market sees a 64% chance of a first Fed
cut in September, according to the CME FedWatch tool.
However, Fed Governor Michelle Bowman reiterated on
Thursday that she is not ready yet to support a central bank
rate cut with inflation pressures still elevated.
The U.S. personal consumption expenditures (PCE) price index
– the Federal Reserve’s preferred inflation measure – is due at
1230 GMT.
A soft set of (PCE) figures is required to keep hopes of Fed
easing alive and further support gold, City Index senior analyst
Matt Simpson said.
While bullion is considered an inflation hedge, higher rates
increase the opportunity cost of holding the non-yielding asset.
Spot silver was flat at $29.07, platinum
gained 1.1% to $998.15. Both metals were set for quarterly
gains.
Spot palladium climbed 1.6% to $944.40.
(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing
by Janane Venkatraman and Sherry Jacob-Phillips
)