Gold gains

Gold gained on Friday after US inflation data came in line with expectations, reinforcing bets that the Federal Reserve may continue with interest rate cuts later this year.

Spot gold rose 0.8 percent to $3,778.62 per ounce as of 01:30 p.m. EDT (1730 GMT), after hitting a record $3,790.82 earlier in the week. The metal has risen about 2.5 percent this week. US gold futures for December delivery settled 1 percent higher at $3,809.

"Monthly PCE data is in line, though personal income and spending were a tenth above expectations. Nothing from this data will prevent the Fed from carrying on with another cautious rate cut at the October meeting," said Tai Wong, an independent metals trader.

Data showed that US Personal Consumption Expenditures (PCE) price index rose 2.7 percent year-on-year in August, in line with economists' expectations in a Reuters poll. Investors now see an 88 percent probability of a rate cut in October and a 65 percent chance of another in December, according to the CME FedWatch Tool.

Markets will also watch remarks from Richmond Fed President Thomas Barkin and Fed Vice Chair Michelle Bowman later in the day for clues on the Fed's stance.

Gold, a traditional safe haven, typically benefits from lower interest rates.

On the trade front, President Donald Trump announced a fresh round of tariffs on imported drugs, trucks and furniture, effective October 1.