Gold set for first weekly drop in nine; focus on US inflation data
Gold edged higher on Friday but was set to snap an eight-week winning streak on a stronger dollar, while investors turned their focus to a key U.S. inflation data for cues into the Federal Reserve's monetary policy trajectory.
Spot gold was up 0.1% at $2,879.09 an ounce, as of 0030 GMT.
Bullion is down nearly 2% for the week, its biggest weekly drop since November 25, 2024, and on track for its first weekly decline after eight consecutive gains.
U.S. gold futures eased 0.2% to $2,889.60.
The dollar index was set for a weekly gain of 0.6% so far, making greenback-priced gold more expensive for foreign buyers.
Trump said on Thursday that his proposed 25% tariffs on Mexican and Canadian goods will take effect March 4 along with an extra 10% duty on Chinese imports because deadly drugs are still pouring into the U.S. from those countries.
Philadelphia Federal Reserve Bank President Patrick Harker on Thursday expressed support for continuing to hold short-term U.S. borrowing costs in their current range of 4.25%-4.50.
Gold is seen as a hedge against political risks and inflation, but higher interest rates dampen the non-yielding asset's appeal.
Investors now await the Personal Consumption Expenditures (PCE) data, the Fed's preferred inflation measure, due later in the day, for further clues on the U.S. economic outlook.
Spot silver was steady at $31.25 an ounce, platinum fell 0.1% to $947.55 and palladium eased 0.4% to $915.63.
Source: Reuters
