PRECIOUS-Gold set for second weekly loss; US inflation data in focus

By Anushree Mukherjee

June 27 (Reuters) - Gold declined on Friday and was headed for a second straight weekly loss, as the Israel-Iran ceasefire deal and progress on a U.S.-China trade agreement dampened safe-haven demand, while investors awaited the U.S. inflation data.

Spot gold XAU= slipped 1.2% to $3,288.55 per ounce as of 0643 GMT. Bullion has lost 2.3% this week.

U.S. gold futures GCcv1 fell 1.4% to $3,300.40.

"The market is looking quite optimistic for the risky assets, so that's weighing on gold prices," said ANZ Commodity Strategist Soni Kumari. MKTS/GLOB

De-escalation in the Middle East after the ceasefire and the progress in U.S.-China trade talks are diminishing uncertainty from the market, sending prices further down, Kumari added.

Iranians and Israelis have welcomed a return to normal life after 12 days of the most intense confrontation ever between the countries and a ceasefire that took effect on Tuesday.

Meanwhile, the U.S. has reached an agreement with China on how to expedite rare earth shipments to the U.S., a White House official said on Thursday, amid efforts to end a trade war between the world's two biggest economies.

Investors are awaiting the U.S. Core Personal Consumption Expenditure data at 1230 GMT for further insight into the Federal Reserve's policy path, with analysts polled by Reuters forecasting a 0.1% monthly increase and a 2.6% annual rise.

Markets are currently pricing in a 63-basis-point rate cut this year, starting September. USDIRPR

U.S. President Donald Trump says that tame inflation means the Fed should already be reducing its policy rate, but only two Fed policymakers to date have embraced the possibility of a rate cut at the central bank's July meeting.

Spot silver XAG= fell 0.5% to $36.44 per ounce and platinum XPT= lost 2.8% to $1,378.18, after hitting its highest in nearly 11 years. Palladium XPD= gained 0.3% to $1,135.36, the highest since October 2024.

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