Trump Mexico: US interest rate cuts in the spotlight

Gold prices rose on Friday to maintain their first monthly rise since January, as expectations of US interest rate cuts are boosted by first-quarter inflation data.

Markets were also closely monitoring international trade tensions, the shocking decision by US President Donald Trump to lower tariffs on Mexico, which could tip the United States, and possibly the entire world, into recession.

Spot gold was up 0.3% to $ 1,292.68 an ounce at 0141 GMT. It has risen by about 0.7% so far this month.

The metal is also on track for a second consecutive weekly gain, up about 0.5% over the week.

Gold futures in the United States rose 0.4% to $ 1,297 an ounce.

US inflation was much weaker than expected in the first quarter, as domestic demand slowed sharply, which could cast doubt on the Federal Reserve's view that price pressures were caused largely by temporary factors.

Asian equities fell and sovereign bonds jumped on Friday after Trump's statement on Thursday that the United States will impose a 5% tariff on all goods from Mexico from June 10, until the end of the year. that illegal immigration crossing the southern border be halted.

The survey also revealed Friday that China's factory activity had declined more than expected in May, putting pressure on Beijing to revive the recovery to support an economy hit by a deadly trade war with the United States. United.

Gold is widely regarded as a safe haven badet, which means that its attractiveness generally grows in the context of political and economic tensions.

The US dollar was heading for a 0.5% gain this week, supported by weak peers such as the euro and the pound.