WASHINGTON (dpa-AFX) - Gold prices climbed higher on Friday amid rising optimism about an interest rate cut by the Federal Reserve, and possibly another one or two by the end of the year.
The dollar's weakness supported the yellow metal a bit. The dollar index dropped to a low of 104.21 around mid morning, after having advanced to 104.45 in the Asian session.
Gold futures for July ended up $28.10 or about 1.2% at $2,380.00 an ounce. Gold futures lost about 0.65% in the week.
Silver futures for July ended higher by $0.053 or about 0.2% at $27.860 an ounce. Silver futures shed about 4.2% in the week.
Copper futures for July dropped to $4.1040 per pound, down $0.0085 from the previous close.
In economic news, a report from the Commerce Department said its personal consumption expenditures (PCE) price index inched up by 0.1% in June after coming in unchanged in May. The uptick by the index matched expectations.
The report also said the annual rate of growth by the PCE price index slowed to 2.5% in June from 2.6% in May. The slowdown in year-over-year growth also met estimates.
Meanwhile, the Commerce Department said the core PCE price index, which excludes food and energy prices, rose by 0.2% in June after inching up by 0.1% in May. Economists had expected another 0.1% uptick.
The annual rate of growth by the core PCE price index was unchanged from the previous month at 2.6% in June, while economists had expected the pace of growth to slow to 2.5%.
The readings on inflation, which are said to be preferred by the Federal Reserve, were included in the Commerce Department's report on personal income and spending.
The University of Michigan's data showed consumer sentiment in the U.S. deteriorated by slightly less than previously estimated in the month of July. The report said the consumer sentiment index for July was upwardly revised to 66.4 from the preliminary reading of 66.0. Economists had expected the reading to be unrevised.
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