Gold prices fell slightly in Asian trading on Friday as easing recession fears limited safe-haven demand. However, persistent expectations of interest rate cuts kept the yellow metal close to its record highs.

• Prices were also on track for modest weekly gains, although overall gains were limited due to traders anticipating a smaller rate cut in September.

• Spot gold fell by 0.1% to $2,453.02 an ounce, while gold futures expiring in December fell by 0.1% to $2,490.15 an ounce.

• Spot prices were up 0.9% for the week and were about $30 away from a record high.

• Weak inflation data released earlier this week fueled increased bets that the Federal Reserve will cut interest rates in September. However, the month-on-month rise in consumer inflation made traders more inclined towards a 25 basis point cut rather than 50 basis points.

• Stronger-than-expected retail sales data also inspired greater confidence in the U.S. economy, while denting expectations for a larger rate cut.

• However, the prospect of lower interest rates remains positive for gold, as it reduces the opportunity cost of investing in non-yielding assets.

• Ongoing concerns about an all-out war in the Middle East maintained some demand for gold as a safe-haven.

• On the other hand, platinum futures fell by 0.5% to $957.85 an ounce, while silver futures fell by 0.7% to $28.207 an ounce.

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