Amanze Chinonye
Gold prices steadied on Friday as strong U.S. economic data tempered expectations for additional Federal Reserve rate cuts this year, while new U.S. tariffs helped support safe-haven demand ahead of a key inflation report.
Spot gold traded at $3,748.41 per ounce as of 06:05 GMT, leaving the metal up about 1.6% for the week, according to Reuters. U.S. gold futures for December delivery were also flat at $3,774.50.
Fresh U.S. data showed weekly jobless claims declined and second-quarter GDP growth was revised higher, signaling resilient consumer spending and business investment.
Join our WhatsApp ChannelThe stronger readings have led investors to scale back bets on near-term rate cuts, with the CME FedWatch tool showing reduced expectations for October and December policy easing. Higher U.S. yields typically weigh on gold by increasing the opportunity cost of holding the non-interest-bearing asset.
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At the same time, new tariffs announced by President Donald Trump, scheduled to take effect on October 1, have injected fresh uncertainty into global markets and bolstered demand for gold as a hedge against policy and trade risks.
Market attention is now focused on the core Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation measure, which is expected to show a 0.3% month-on-month rise and a 2.7% annual increase for August.
Analysts say gold’s broader uptrend remains intact, though a near-term correction is possible before any sustained push higher. Technical watchers point to support near $3,720–3,715 and resistance around $3,752, with a decisive break above $3,800 potentially opening the door to renewed buying.
For now, the precious metal remains caught between two forces: fading hopes of rapid Fed rate cuts, which cap upside momentum, and tariff-driven safe-haven flows that continue to underpin prices.
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