Gold prices were flat on Friday, after strong U.S. economic data eased recession concerns and dampened expectations for an aggressive interest rate cut by the Federal Reserve next month.

 

FUNDAMENTALS

* Spot gold edged 0.1% higher to $2,457.80 per ounce, as of 0028 GMT. U.S. gold futures rose 0.1% to $2,495.50.

* Data on Thursday showed U.S. retail sales rose 1.0% last month after a downwardly revised 0.2% drop in June, according to the Commerce Department's Census Bureau.

* Additionally, U.S. jobless claims hit a one-month low last week, indicating a steady labor market slowdown and reducing market expectations of a 50 basis-point rate cut by the Federal Reserve next month.

* Markets are now pricing in a 75% chance of a 25 bps cut next month and a 25% chance of a 50 bps reduction, the CME FedWatch tool showed. Traders were evenly split at the start of the week between the two cut options.

* A low interest rate environment tends to boost non-yielding bullion's appeal.

* Meanwhile, Fed Chair Jerome Powell will speak on the economic outlook next Friday at the Jackson Hole symposium.

* Market will also look out for Chicago's Fed President Austan Goolsbee's speech, which is due later in the day.

* Elsewhere, a new round of Gaza ceasefire talks was underway in the Qatari capital Doha, as Palestinian health authorities said the death toll from the war surpassed 40,000 and pressure to end the war in the Palestinian enclave mounted.

* Spot silver was nearly unchanged at 28.39 per ounce, platinum ticked 0.02% lower to $952.53 and palladium shed 0.4% to $940.12.

 

DATA/EVENTS (GMT) 0430 Japan Tertiary Ind Act NSA June 0600 UK Retail Sales MM July 0600 UK Retail Sales Ex-Fuel MM July 0600 UK Retail Sales YY July 0900 EU Total Trade Balance SA June 1000 EU Reserve Assets Total July 1230 US Housing Starts Number July 1400 US U Mich Sentiment Prelim August

(Reporting by Daksh Grover in Bengaluru; Editing by Rashmi Aich)