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Gold prices inched up in Asian trading on Friday, recovering slightly from a week marked by significant losses as traders largely favored the dollar ahead of key interest rate signals. The precious metal had surged to record highs in July, only to be pulled back by a mix of profit-taking and market volatility.
Gold’s Weekly Performance and Market Outlook
As of 00:43 ET (04:43 GMT), spot gold was up 0.3% at $2,371.23 an ounce, while gold futures for August delivery rose 0.7% to $2,369.90 an ounce. Despite this uptick, gold prices were down 1.2% for the week. This decline was exacerbated by stronger-than-expected U.S. second-quarter GDP data, which bolstered hopes for a soft landing for the U.S. economy and reduced demand for safe-haven assets like gold.
Investors are keenly awaiting the Personal Consumption Expenditures (PCE) price index data, the Federal Reserve’s preferred inflation gauge. This data, expected to show a slight easing of inflation in June, comes just ahead of a Fed meeting where the central bank is anticipated to hold rates steady while potentially signaling a rate cut in September. Lower interest rates generally support gold prices by reducing the opportunity cost of holding non-yielding assets.
Political Uncertainty and Precious Metals
The ongoing U.S. presidential race, with recent polls indicating a close contest between Republican candidate Donald Trump and Democratic frontrunner Kamala Harris, could also increase demand for gold as a safe-haven asset amid political uncertainty.
Other precious metals exhibited mixed performance on Friday. Platinum futures rose 0.4% to $948.00 an ounce, though they posted a 2.7% loss for the week. Silver futures fell 0.3% to $27.890 an ounce, nursing a nearly 5% weekly decline.
