Gold drops, heads for third weekly rise

Gold prices declined on Friday, but are on track to record gains for the third consecutive week, backed by expectations for a Federal Reserve rate cut following the slowdown in consumer price inflation in June. 

Gold futures for August delivery eased 0.53%, or $12.9, to $2,409 per ounce at 09:49 am KSA Time. 

Spot gold declined 0.48% to $2,403.87 per ounce. Silver for September delivery dropped by 1.95% to $31.06. The spot price of platinum fell by 1% to $997.28 per ounce. 

Gold futures surpassed the $2,400 per ounce mark at the close of trading on July 11 for the first time since May 22, after US data showed a larger-than-expected slowdown in annual consumer price inflation in June. 

These data led to an increase in expectations of a 25 basis point rate cut by Fed at its September meeting to 86.4%, up from 69.7% yesterday and 72.2% a week ago, according to the CME FedWatch tool.