Gold Holds Firm Amid Fed Uncertainty and Global Tensions

Gold prices remained supported on Friday, holding onto gains above the $4,300 level after reaching a seven-week high. Traders booked some profits ahead of the weekend, but the precious metal continues to benefit from uncertainty around U.S. monetary policy and ongoing geopolitical frictions.

Federal Reserve officials have expressed concerns about persistent inflation, even as key economic data, such as the Consumer Price Index, remain scarce and potentially distorted by recent government shutdowns. While some officials see the economy showing momentum, others caution that the labor market is weakening, complicating decisions about future interest-rate moves.

The stalled peace talks between Russia and Ukraine are also contributing to gold’s appeal as a safe-haven asset. Investors are closely watching the situation, as the lack of progress adds a layer of geopolitical risk that tends to support bullion.

U.S. labor data added further nuance to the market. Initial jobless claims rose more than expected, while continuing claims showed some stabilization. Treasury yields are gradually rising, but real yields remain relatively low, providing additional support for gold prices. Meanwhile, the U.S. dollar has shown little movement, keeping gold attractive for investors seeking protection against currency fluctuations.

Overall, gold remains in an upward trend, with buying momentum still strong. Traders are monitoring both economic signals and geopolitical developments, positioning bullion as a hedge against uncertainty and inflation pressures. The coming weeks will likely determine whether gold can sustain its gains or face profit-taking as markets digest these complex factors.