Gold prices remained largely unchanged in Asian trading Friday, steadying after recent declines from record highs as new U.S. tariff measures kept investors leaning toward safe-haven assets.
The market’s attention is turning to upcoming U.S. inflation figures, which have helped maintain interest in gold. Despite posting a series of record highs in recent weeks, the metal’s weekly gains were restrained by a rebound in the U.S. dollar. Broader metals also saw modest weekly advances, reflecting lingering uncertainty over the timing of Federal Reserve interest rate cuts.
Spot gold held at $3,749.30 per ounce, while gold futures added 0.2% to $3,778.90 per ounce by 01:39 ET (05:39 GMT). Earlier in the week, spot prices reached a record $3,791.11 per ounce.
Tariff Announcements Lift Gold
Gold’s stability follows President Donald Trump’s introduction of a range of trade tariffs, including a 100% levy on all imported pharmaceutical products. The measures fueled concerns about economic impact and triggered risk-averse flows into gold.
The metal is on track for approximately a 1.7% gain this week, marking its sixth consecutive weekly increase. However, uncertainty over U.S. interest rate policy has capped its climb from record highs. Second-quarter GDP data showed stronger-than-expected growth, while weekly jobless claims improved slightly, further shaping market expectations.
Federal Reserve Chair Jerome Powell has noted elevated risks from persistent inflation and a softening labor market. Meanwhile, the dollar’s rebound from three-year lows has restrained broader gains in metals and commodities.
Focus Shifts to PCE Inflation Data
Investors are awaiting the release of the U.S. Personal Consumption Expenditures (PCE) price index, the Fed’s preferred measure of inflation, for further guidance on interest rate policy. Headline inflation is expected to remain elevated in August, while core PCE inflation is projected to stay well above the Fed’s 2% target.
High inflation readings may limit the Fed’s ability to reduce rates, particularly amid uncertainties from Trump’s tariffs. On Thursday, Trump reiterated his call for lower interest rates, urging the Fed to cut rates to 2% and continued his criticism of Powell, who has largely resisted pressure to ease policy.
Other Metals Performance
Spot platinum rose 0.9% to $1,541.85 per ounce, while silver slipped 0.7% to $44.8745 per ounce. Industrial metals were mixed: LME copper futures were steady at $10,258.65 per ton, while COMEX copper futures fell 0.2% to $4.7807 per pound.
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