Gold is set to decline for the second consecutive week as U.S. PCE data draws attention

On June 27, gold prices fell on Friday as the Israel-Iran ceasefire suppressed safe-haven demand, while investors awaited U.S. PCE data, marking a second consecutive week of decline. Soni Kumari, a commodity strategist at ANZ Bank, stated that the market is quite optimistic about risk assets, which is pressuring gold prices. The easing of tensions in the Middle East following the ceasefire and progress in trade negotiations are reducing market uncertainty, leading to further declines in gold prices. Investors are awaiting the U.S. core PCE data to be released tonight for further insights into the Federal Reserve's policy path. Analysts surveyed by Reuters expect the core PCE month-on-month growth to be 0.1% and year-on-year growth to be 2.6%. The market currently anticipates that the Federal Reserve will begin cutting interest rates by 63 basis points starting in September this year. U.S. President Trump previously stated that moderate inflation means the Federal Reserve should have already begun lowering the policy rate, but so far, only two Federal Reserve policymakers believe the Fed could cut rates at the July meeting.