Gold prices declined on Friday but are on track for a second consecutive month of gains, on prospects of a US interest rate cut in September, while traders awaited key US inflation data for further insights.

Spot gold was trading at $2,513.99 per ounce, a decrease of 0.3%. However, it is set to finish the month with an approximately 3% increase.

US gold futures also fell by 0.5%, settling at $2,547.10 per ounce.

Traders have priced in a substantial chance of rate cut, with a 66% probability for a 25-basis-point reduction and a 34% chance for a 50-bps cut.

Spot silver settled at $29.44 per ounce, palladium rose 0.1% to $981, both metals on track for monthly gains.

Platinum edged up by 0.8% to $945.10.

Source: Qatar News Agency