Gold prices eased on Friday, retreating from record levels on mounting expectations of another big US interest rate cut this year, while market participants awaited a key inflation report for further direction.

Spot gold settled at $2,673.21 per ounce. Bullion hit a record high of $2,685.42 on Thursday.

US gold futures edged lower to $2,695.80.

Spot silver fell 0.3% to $31.93 per ounce, after hitting a 12-year peak in the previous session.

The Federal Reserve delivered a 50-basis-point rate cut at its last policy meeting and traders see a 51% chance of another half-percentage-point reduction in November.

Lower interest rates reduce the opportunity cost of holding bullion, which is also viewed as a safe asset during economic and political turmoil.

Market focus is now on the core personal consumption expenditures price index data, the Fed's preferred inflation gauge, due later in the day.

Source: Qatar News Agency