Investing.com - Gold prices were still on the rise Friday even though better-than-expected U.S. growth cast doubt on the need for the Federal Reserve to ease monetary policy dramatically.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange, rose $4.95, or 0.4%, to $1,420.01 a troy ounce by 9:03 AM ET (13:03 GMT).
The advanced reading for second-quarter GDP saw growth in the U.S. slow from 3.1% in the first three months of the year to 2.1%, better than the expected drop to 1.8%.
Michael Hewson, chief market analyst at CMC Markets, said the headline growth figure, personal consumption of 4.3% and core PCE of 1.8% were all good numbers.
“Remind me why the Fed needs to cut again?” he tweeted. “If the Fed does cut next week, I’m struggling to see how there won’t be some form of dissent.”
Markets have fully priced in expectations that the Fed will cut interest rates by 25 basis points on July 31, but speculation has been fluctuating over a more aggressive 50 basis-point cut.
Those odds fell to 19.4% after the data compared to 23.5% ahead of the release.
Fed funds futures still price expectations for a total of three rate cuts this year, though the probability dipped to 52.9% following the report.
The prospect of lower interest rates benefits non-yielding bullion.
In other metals trading, silver futures gained 0.6% to $16.503 a troy ounce by 9:05 AM ET (13:05 GMT).
Palladium futures were little changed at $1,533.25 an ounce, while sister metal platinum dropped 0.2% to $872.30.
In base metals, copper traded down 0.4% to $2.694 a pound.