09:29 AM EDT, 06/28/2024 (MT Newswires) -- Gold prices rose for a second day on Friday as the dollar and yields eased after a report showed U.S. inflation slowed last month.

Gold for August delivery was last seen up US$11.70 to US$2,348.30 per ounce.

The U.S. Bureau of Economic Analysis reported the Personal Consumption Expenditures (PCE) Index, the Federal Reserve's preferred inflation measure, fell to 2.6% annualized in May from 2.7% in April, matching the consensus expectation according to Marketwatch. The core measure, which excludes volatile food and energy, fell to 2.6% annualized from 2.8% in April, also matching expectations.

The slowing pace of inflation is raising hopes the Fed will be able to speed interest rate cuts, with the CME Fedwatch tool now showing a 59.5% probability the central bank will make a 25 basis point cut to rates at its September meeting.

"Once again, gold's daily back and forth is tied to data releases and related expectations. Today it is about US consumer cost data ... which investors are looking to for signals on when the Fed will start to cut interest rates," Christopher Louney, a commodities strategist at RBC Capital Markets, wrote.

The dollar eased following the data, with the ICE dollar index last seen down 0.02 points to 105.88.

Treasury yields narrowed, with the U.S. two-year note last seen paying 4.687%, down 3.1 basis points, while the yield on the 10-year note was down 2.3 basis points to 4.268%.