· Gold prices rose on Friday as investors shrugged off concerns that stronger-than-expected consumer inflation in the United States could influence the U.S. central bank’s decision on aggressive monetary policy easing.

· Spot gold rose 0.9% to $1,415.53 per ounce. U.S. gold futures rose 0.4% to settle at $1412.20 per ounce.

· “Inflation data came out a little bit hotter than expected. It seems every day that the probability of rate cut versus keeping rates unchanged is flip-flap. There are uncertainties around that,” said Phillip Streible, senior commodities strategist at RJO Futures.

“If gold closes below $1,400 level on a Friday, (it) could be a blow to the bulls. I see a resistance level of $1,441 if there is enough demand for gold.”

· Gold rose on Friday and was on track to post a weekly gain, supported by an easing dollar and weaker than expected Chinese trade data which stoked global growth concerns.

· China’s exports fell in June as the United States ramped up trade pressure, while imports shrank more than expected, pointing to further strains on the world’s second-largest economy.

Also helping gold was the dollar index, which eased for a third straight session as stronger-than-expected U.S. inflation data failed to shake convictions that the Federal Reserve will start cutting interest rates this month.

Despite the robust core U.S. consumer price index data, money markets still indicated one rate cut at the end of July and a cumulative 64 basis points in cuts by the end of 2019.

· “The comments from the Fed and the minutes this week were on the dovish side and have given the market hope that there might be a chance of a 50 basis point cut,” said ABN Amro analyst Georgette Boele.

· Against a basket of currencies, the dollar was lower for a third straight day, down 0.1%.

· Market attention will be focused on comments by Chicago Fed President Charles Evans later in the session and New York Fed President John Williams on Monday, which will provide a chance to gauge how dovish the U.S. central bank will be.

· Fed policymakers are scheduled to meet on July 30-31, where investors will look for further cues on monetary policy easing.

· In the physical market, gold buying stalled in top Asian hubs this week as consumers sold back bullion to cash in on the steep price rally.

A recent import duty hike further dented waning interest in an Indian market hit by a surge in local rates

Reference: CNBC, Kitco