Gold edges higher toward $3,791 peak as US Dollar softens
Gold (XAU/USD) extends gains on Friday, pushing past the recent $3,760-$3,720 range. At the time of writing, XAU/USD is trading around $3,780, hovering just below the all-time high of $3,791 set earlier this week, as the US Dollar (USD) corrects lower in the wake of the latest US economic data.
The core PCE Price Index, the Federal Reserve’s (Fed) preferred gauge of underlying inflation, rose 0.2% MoM, matching forecasts and down from July’s originally reported 0.3%, which was revised lower to 0.2%. On an annual basis, the core measure held steady at 2.9%, underscoring that inflation is easing but still above the Fed’s 2% target.
The headline PCE Price Index rose 0.3% on the month, matching expectations and up from 0.2% in July, while the annual rate ticked up to 2.7% in August from 2.6% a month earlier.
Recent remarks from Fed policymakers have underscored the central bank's cautious approach to further easing, after last week’s 25-basis-point interest rate cut. While officials have acknowledged rising risks to the labor market, they also flagged persistent price pressure and warned against moving too aggressively. This comes together with a string of resilient US economic data released on Thursday, including stronger-than-expected Gross Domestic Product (GDP) and Weekly Jobless Claims, which complicate the Fed’s path toward additional cuts.
Overnight, Gold drew some support as investors weighed fresh trade frictions following US President Donald Trump's unveiling of a new round of sector-specific import tariffs. The renewed focus on trade frictions, combined with lingering geopolitical risks, reinforces Gold’s role as a safe-haven asset and helps keep it anchored near record highs.
Source: Fxstreet
