Gold Edges Lower as Investors Scale Back Rate Hike Bets

Gold prices inched lower on Friday but were still set for a modest weekly gain due to investors scaling back bets on a September interest rate hike. Spot gold fell by 0.1% to $4,467.30 per ounce by 11:37 GMT, while US gold futures for December delivery dropped 0.6% to $4,513.70 per ounce.

However, the metal was boosted by Fed Governor Christopher Waller's comments that he leaned towards keeping interest rates steady at the central bank's policy meeting this month if upcoming inflation data shows moderating price pressures.

Waller's comments gave gold a 'steroid shot,' according to independent analyst Ross Norman, who said the effect is likely to be short-lived as fresh data takes precedence. The US nonfarm payrolls report is due at 12:30 GMT, followed by the August CPI and PPI inflation reports next week.

Citi remains bullish on precious metals, with its 0-3-month point price target for gold at $4,800 per ounce and a 6-12-month forecast of $5,000. The investment bank said momentum in gold prices will likely attract retail buying similar to the second half of 2025.

Gold demand in India improved this week as a drop in prices spurred some buying interest, while investment flows continued to support consumption in top consumer China.