After U.S. inflation data, which was colder than expected, raised hopes that the Federal Reserve will likely start cutting interest rates in September, the gold price fell on Friday but is heading for a third consecutive weekly increase.

US gold futures fell by 0.3% to $2,413.90. Spot gold fell 0.2% to $2,408.70 per ounce at 0148 GMT after rising 2% on Thursday. Data on Thursday showed that American consumer prices fell unexpectedly and the annual increase was the lowest in a year, bringing the Fed closer to cutting interest rates. According to Tim Waterer, chief market analyst at KCM Trade, “the outlook for inflation and interest rates worked in favor of gold this week. As we move closer to a lower interest rate environment, the conditions could be right for gold to reach new record highs before the end of the year.”

Spot silver slid 0.8% to $31.20 per ounce, after reaching a high of over a month on Thursday. Platinum fell by 0.2% to $1,001.90 and palladium fell by 1% to $984.63. Both metals were on the verge of weekly declines