Editor’s Note
Gold prices stabilized on Friday but remained set for a weekly loss, pressured by a stronger U.S. dollar. Market focus now turns to upcoming U.S. inflation figures for clues on the Federal Reserve’s next policy moves.
Gold steadied on Friday but was on track for a weekly decline as the dollar climbed to a near one-month high. Investors were awaiting key U.S. inflation data to assess the Federal Reserve’s future monetary policy path.
Spot gold was steady at $5,000.40 per ounce as of 0530 GMT, down about 1% for the week so far. U.S. gold futures for April delivery were up 0.4% at $5,019.10.
said GoldSilver Central Managing Director Brian Lan.
Markets in Mainland China and Taiwan were closed for the Lunar New Year holidays.
The dollar was set for its strongest weekly performance since October, supported by a run of stronger-than-expected economic data, a more hawkish Federal Reserve outlook, and lingering tensions between the U.S. and Iran.
The Personal Consumption Expenditure (PCE) data, the Fed’s preferred inflation gauge, for December is now in focus for clues on U.S. monetary policy.
Markets currently expect the Fed to deliver its first rate cut of the year in June, according to CME’s FedWatch Tool. Non-yielding bullion tends to perform well in low-interest-rate environments.
Goldman Sachs said in a note that under its base case scenario, it expects central bank buying to re‑accelerate, while private investors will add exposure only in response to Fed rate cuts, driving gold higher to $5,400 per troy ounce by the end of 2026.
It also said it continues to see the medium-term trajectory for gold prices as upward, potentially with elevated volatility.
Elsewhere, spot silver edged 0.2% higher to $78.47 per ounce. Spot platinum ticked up 0.1% to $2,071.63 per ounce, while palladium gained 0.1% to $1,684.59.
(Reuters)