09:20 AM EDT, 05/30/2025 (MT Newswires) -- Gold traded lower early on Friday as the dollar rose after data showed a key measure of U.S. inflation fell more than expected last month.

Gold for August delivery was last seen down US$19.00 to US$3.324.90 per ounce.

The U.S. Bureau of Economic Analysis reported the Personal Consumption Expenditures (PCE) Index, the Federal Reserve's preferred inflation measure, rose by an annualized 2.1% in April, down from a 2.3% pace in March and under the FactSet consensus estimate for a 2.2% rise. Core PCE, excluding volatile items, rose 2.5%, down from 2.7% a month earlier while meeting the consensus estimate.

The report is not expected to change the outlook for U.S. interest rates, with the Federal Reserve's policy committee widely expected to hold rates steady at the June 18 end of its next two-day meeting. The CME Fedwatch Tool sees a 98% probability the central bank will keep rates steady, with no cut expected until September.

The dollar rose following the PCE data, with the ICE dollar index last seen up 0.14 points to 99.42. Treasury yields were little changed, with the yield on the U.S. two-year note down 0.6 basis points to 3.941%, while the 10-year note was paying 4.416%, down 0.8 points.