By Anmol Choubey
(Reuters) – Gold steadied on Friday as U.S. data tempered expectations for further Federal Reserve rate cuts this year, while fresh tariffs announced by U.S. President Donald Trump provided some support ahead of a key inflation report due later in the day.
Spot gold held its ground at $3,748.41 per ounce, as of 0605 GMT, but has climbed 1.6% so far this week.
U.S. gold futures for December delivery were also steady at $3,774.50.
“Gold is trading in somewhat sluggish fashion, with traders reluctant to get on board with any real conviction in case the core PCE data even vaguely mirrors the jump higher in GDP print,” said KCM Trade Chief Market Analyst Tim Waterer.
Data released on Thursday showed that weekly U.S. jobless claims declined, while the economy grew faster than estimated in the second quarter on strong consumer spending and business investment.
Investors lowered their expectations for Fed rate cuts in October and December, with probabilities falling to 85% and 60% from earlier levels of 91% and 76%, respectively, following U.S. economic data, according to the CME FedWatch Tool.
“Trump’s latest tariff announcement keeping traders on alert, and the resulting safe-haven flows may act to limit the extent of any immediate downside for gold,” said Waterer.
On Thursday, Trump announced a fresh round of punishing tariffs on a broad range of imported goods starting October 1.
All eyes are now on the personal consumption expenditures (PCE) price index data, the Fed’s preferred inflation measure, due at 1230 GMT.
The report is expected to show a 0.3% month-on-month rise and a 2.7% year-on-year jump in August, per a Reuters poll.
Physical gold demand in China weakened further this week, while steady buying persisted in other major Asian hubs despite the high prices in anticipation of further gains. [GOL/AS]
Safe-haven bullion tends to perform well in a low-interest-rate environment.
Spot silver fell nearly 1% to $44.83 per ounce, platinum jumped 0.8% to $1,541.39 to hover near a 12-year high, and palladium gained 0.9% to $1,261.59. All three metals were headed for weekly gains.
(Reporting by Anmol Choubey in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)
