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Gold Flat Ahead of US Data, But Set for Fourth Straight Monthly Gain

A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)
A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)
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Gold Flat Ahead of US Data, But Set for Fourth Straight Monthly Gain

A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)
A jeweller shows a gold bar at his shop in downtown Kuwait City on May 20, 2024. (Photo by YASSER AL-ZAYYAT / AFP)

Gold prices were set for a fourth straight monthly gain, even as the market struggled for momentum on Friday ahead of a key US inflation reading that could provide more indications on how the Federal Reserve might proceed with rate cuts later this year.
Spot gold was unchanged at $2,343.63 per ounce, as of 0726 GMT. Bullion prices are up 0.4% so far this week and 2.5% so far in the month.
US gold futures was flat to $2,341.80, said Reuters.
The monthly gains are due to "the central bank (buying) element and the residual geopolitical risk story," said Kyle Rodda, a financial market analyst at Capital.com.
The market is now waiting for the release of the US core Personal Consumption Expenditures (PCE) price index data, the Fed's preferred measure for inflation, at 1230 GMT.
"Ahead of the data, gold prices have been largely treading water... A weaker US GDP read last night may call for imminent policy easing, but much validation will still revolve around the extent of inflation progress," said IG market strategist Yeap Jun Rong.
Any upside in PCE could put gold on the back foot but it may take much more to reverse the broader upward trend, with buyers likely to step in to defend the $2,300 level, he added.
Data on Thursday showed that the US economy grew more slowly in the first quarter than previously estimated.
Meanwhile, traders have dialed back rate-cut expectations after Fed officials recently struck a hawkish tone that suggests a longer route to the 2% inflation target.
While bullion is considered an inflation hedge, higher rates increase the opportunity cost of holding the non-yielding asset.
Spot silver was steady to $31.18 per ounce, but was set for its biggest monthly gain since July 2020.
Platinum was up 0.3% at $1,026.75 and palladium gained 0.2% to $949.34.
Nornickel, the world's largest producer of palladium , said it expected a global deficit of 0.9 million ounces for palladium in 2024.

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Lockheed Martin Completes First Saudi Produced THAAD Components

A recent meeting at Arabian International Co. for Steel Structures (AIC) in Jeddah to announce the First Saudi Produced THAAD Components 
A recent meeting at Arabian International Co. for Steel Structures (AIC) in Jeddah to announce the First Saudi Produced THAAD Components 
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Lockheed Martin Completes First Saudi Produced THAAD Components

A recent meeting at Arabian International Co. for Steel Structures (AIC) in Jeddah to announce the First Saudi Produced THAAD Components 
A recent meeting at Arabian International Co. for Steel Structures (AIC) in Jeddah to announce the First Saudi Produced THAAD Components 

The US Lockheed Martin company announced on Sunday that Saudi Arabia has completed the first domestically manufactured components for the Terminal High Altitude Area Defense system launcher in Jeddah, marking a significant step forward in the Kingdom’s ongoing efforts to localize its defense industry.

The THAAD deal was a core part of the weapons sale offering presented by US President Donald Trump during his May 20 visit to Saudi Arabia in 2017.

The announcement was made during a recent meeting at Arabian International Co. for Steel Structures (AIC) in Jeddah, attended by Tim Cahill, president of missiles and fire control at Lockheed Martin, General Authority for Military Industries (GAMI) Assistant Deputy Nawaf Albawardi, and Wasim Attieh, president of AIC.

The milestone reflects a growing collaboration between AIC and Lockheed Martin, aimed at advancing Saudi Arabia’s defense manufacturing capabilities. The locally produced components were developed through precision welding and advanced manufacturing techniques, reinforcing both the Kingdom’s defense industrial base and the US supply chain by establishing a second source of production.

“This is a tremendous milestone for the United States of America and the Kingdom of Saudi Arabia as our nations work to fulfill the Kingdom’s THAAD procurement,” said Tim Cahill. “Through this program, we're not only supporting Saudi Vision 2030 and enhancing regional defense capacity, but we’re also generating high-quality manufacturing jobs in the United States and strengthening the American defense industrial base.”

AIC Steel President Wasim Attieh praised the collaboration, saying, “Lockheed Martin has been an excellent partner in providing the tools and training necessary to prepare and ultimately advance the localized production of such a major component of the THAAD Weapon System.”

He added, “I look forward to working together to ensure a more secure future for the Kingdom of Saudi Arabia.”

THAAD is a combat-proven missile defense system designed to intercept short-, medium-, and intermediate-range ballistic missiles both inside and outside the earth’s atmosphere. Its operational readiness, flight test success, and proven performance continue to draw international interest.