Gold prices edged lower on Friday, on track for a nearly 2% weekly decline, as traders positioned themselves ahead of a closely watched US inflation report.
Gold futures were down 0.7% to $3,320.20 per ounce at the time of writing on Friday morning, while the spot gold price slipped 0.1% to $3,295.14 per ounce.
The move came as investors awaited the release of the personal consumption expenditures (PCE) price index, the Federal Reserve’s preferred measure of inflation, later in the day.
Technical dynamics also contributed to the pullback, according to Kelvin Wong, senior analyst at Oanda Asia Pacific.
“The price action in gold has twice failed to break above the key near-term resistance level of $3,328 — both in the US session yesterday and again early in the Asian session today,” he said.
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Still, the broader investment case for gold remains intact. The precious metal’s haven appeal was boosted by renewed uncertainty over Donald Trump’s trade agenda, after a US federal appeals court on Thursday granted the US president a temporary reprieve from a ruling that threatened to upend much of his planned tariffs.
Goldman Sachs (GS) this week reaffirmed its view that bullion, alongside crude oil, remains a key inflation hedge for long-term portfolios.
Oil prices inched higher on Friday but remained on course for a second straight weekly decline, pressured by expectations of increased supply from OPEC+ and renewed uncertainty surrounding US trade policy.
Brent crude futures climbed 0.1% to $63.46 a barrel, while West Texas Intermediate futures rose 0.2% to $61.06 a barrel. However, both contracts have fallen 1.3% so far this week.
The pressure on prices stemmed largely from concerns over rising output. Investors are anticipating that the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) will move forward with another production increase when eight of its members meet on Saturday.
Analysts expect prices to stay within recent ranges in the short term, before potentially easing into the high $50s by the end of the year.
Meanwhile, in the US, oil markets were further unsettled after a federal appeals court on Thursday temporarily reinstated tariffs introduced by Trump. The move reversed a trade court’s decision a day earlier that had ordered an immediate block on the most extensive of the duties.
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The legal back-and-forth sent oil prices tumbling more than 1% on Thursday, as traders recalibrated expectations in light of continued policy uncertainty. Analysts warned that further volatility is likely as the dispute winds through the courts.
