Gold rises ahead of Fed's inflation indicator

Gold prices are preparing to close the week in the red, despite rising ahead of the PCE data that could provide clues regarding the Fed's interest rate cuts.

Following a 1.4 percent decline the day before yesterday, the ounce price of gold traded 0.4 percent above the previous close on the new day.

Economic data released in the US yesterday showed that the economy grew faster than expected in the second quarter and that inflation slowed. This situation alleviated concerns regarding the possibility of a sudden halt in economic growth and strengthened expectations that the US Federal Reserve (Fed) will cut interest rates in September.

The Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge, will be released in the US today.

While markets assign a low probability to the Fed cutting rates by at least 25 basis points next week, they are fully pricing in a rate cut for September.

The spot price of gold rose by 0.2 percent, trading at 2,373 dollars per ounce.

As of 9:00 AM, gram gold was trading at 2,526 TL, quarter gold at 4,130 TL, and Republic gold at 16,471 TL.