Gold Prices Hold Steady as Traders Await U.S. Inflation Data
Gold prices remained steady in Asian trading on Friday after sliding from record highs earlier in the week. Fresh U.S. tariff measures kept investors cautious, boosting demand for safe-haven assets.
Tariffs Drive Caution, Support Gold
U.S. President Donald Trump announced sweeping tariffs, including a 100% duty on pharmaceutical imports, raising concerns about global trade and economic growth. The move triggered risk-off sentiment across financial markets, pushing some investors back into gold.
Spot gold traded flat at $3,749.30 per ounce, while futures rose 0.2% to $3,778.90 by 01:39 ET (05:39 GMT). Prices had reached a record high of $3,791.11 earlier in the week. Despite the pullback, gold was on track for a 1.7% weekly gain, marking its sixth consecutive week of gains.
Fed Policy and Dollar Strength Limit Gains
The advance in gold was capped by a rebound in the U.S. dollar, which moved off three-year lows. Stronger U.S. economic data also weighed on sentiment. Second-quarter GDP exceeded forecasts, and weekly jobless claims showed improvement.
Federal Reserve officials, including Chair Jerome Powell, pointed to ongoing risks from sticky inflation and a weaker labor market. These concerns left markets uncertain over when the Fed might cut rates.
PCE Data in Focus
Investors are now waiting for the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge. The report is due later Friday and is expected to show inflation holding well above the Fed’s 2% target. Sticky inflation could reduce the case for near-term rate cuts, especially against the backdrop of Trump’s tariff policy.
Trump again urged the Fed to lower interest rates to 2%, but Powell has continued to push back against such calls.
Broader Metals Mixed
Other precious metals showed mixed movement. Platinum rose 0.9% to $1,541.85, while silver dropped 0.7% to $44.87. Industrial metals were also subdued, with LME copper flat at $10,258.65 a ton and COMEX copper futures slipping 0.2% to $4.78 a pound.
