Gold prices rose this week as the U.S. core PCE index for April showed slowing inflation, according to Gold10. Swap traders predict that the Federal Reserve will cut interest rates at least once this year. Bart Melek, global head of commodity strategy at TD Securities, believes that this is in line with economists' expectations and confirms the Fed's assumption that U.S. inflation pressures are easing.

“The weakness in personal spending leads me to believe there is a chance that the Fed will cut rates in the summer,” Melek said. “This could attract speculative money into gold and silver, and if combined with the strong interest in gold in the Asian market, this could be a major positive for the precious metal.”