Gold prices showed little movement in Asian trading on Friday, stabilizing after a recent decline from record levels as renewed U.S. tariff measures encouraged traders to favor safe-haven assets.
Investor focus was also drawn to upcoming U.S. inflation data, keeping demand for gold relatively firm. The metal maintained modest weekly gains after hitting a series of record highs, although a stronger U.S. dollar limited further advances. Broader metal markets also experienced restrained gains amid uncertainty over the timing of Federal Reserve interest rate cuts.
Spot gold was unchanged at $3,749.30 per ounce, while gold futures inched up 0.2% to $3,778.90 per ounce by 01:39 ET (05:39 GMT). Earlier this week, spot prices reached a record high of $3,791.11 per ounce.
Tariff Concerns Support Gold Demand
Gold steadied following President Donald Trump’s announcement of new U.S. trade tariffs, including a 100% levy on all imported pharmaceuticals. The tariffs heightened uncertainty over their economic impact and prompted risk-averse flows into gold.
The metal was poised for roughly a 1.7% gain on the week, marking its sixth consecutive weekly increase. However, rising uncertainty over U.S. interest rates prevented gold from sustaining its record highs. Recent U.S. data showed a stronger-than-expected GDP growth in Q2 and some improvement in weekly jobless claims, adding to speculation about the pace of Fed policy adjustments.
Federal Reserve Chair Jerome Powell has highlighted elevated economic risks stemming from persistent inflation and a slowing labor market. The U.S. dollar rebounded from multi-year lows this week, tempering gains across metals and commodities.
Markets Await PCE Inflation for Rate Signals
Investors are now eyeing the U.S. PCE price index— the Fed’s preferred inflation measure— for indications on potential interest rate moves. Headline inflation for August is expected to remain elevated, with core PCE figures staying well above the Fed’s 2% annual target.
Sticky inflation may reduce the Fed’s scope to cut rates, particularly amid uncertainty from Trump’s tariffs. On Thursday, Trump reiterated his call for lower U.S. interest rates, urging the Fed to cut rates to 2% and renewing criticism of Powell, who has largely resisted the president’s pressure.
Other Metals Mixed
Spot platinum rose 0.9% to $1,541.85 per ounce, while silver slipped 0.7% to $44.8745 per ounce. Industrial metals saw muted movements: LME copper futures held steady at $10,258.65 per ton, while COMEX copper futures fell 0.2% to $4.7807 per pound.
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