Gold futures were down 0.7% to $3,320.20 per ounce, while spot prices dipped 0.1% to $3,295.14 per ounce during morning trading. The declines came ahead of the release of the Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred gauge of inflation, scheduled for later in the day.
According to Kelvin Wong, senior analyst at Oanda Asia Pacific, technical resistance also played a role in the pullback. “Gold has failed twice to break above the key near-term resistance level of $3,328 — once during the U.S. session yesterday and again early in the Asian session today,” Wong noted.
Gold Supported by Trade Uncertainty and Long-Term Demand
Despite the short-term decline, gold’s longer-term investment appeal remains intact. Market uncertainty surrounding former President Donald Trump’s trade agenda has revived interest in the safe-haven asset. On Thursday, a U.S. federal appeals court granted Trump a temporary reprieve from a ruling that had threatened to derail his tariff plans, reintroducing trade-related volatility to markets.
Goldman Sachs reaffirmed its bullish stance on bullion this week, maintaining that gold, alongside crude oil, remains a vital hedge against long-term inflation pressures.
Oil Prices Rise Modestly but Head for Weekly Loss
Oil prices posted slight gains on Friday but remained under pressure amid expectations of increased supply and renewed trade policy uncertainty. Brent crude futures edged up 0.1% to $63.46 per barrel, while West Texas Intermediate (WTI) rose 0.2% to $61.06 per barrel. Both benchmarks, however, were down 1.3% for the week.
The prospect of higher output from the Organization of the Petroleum Exporting Countries and its allies (OPEC+) has weighed on prices. Eight OPEC+ members are set to meet on Saturday, and markets anticipate another round of production increases.
Analysts expect crude prices to remain range-bound in the near term, potentially drifting toward the high $50s by year-end, should supply pressures persist.
Further dampening sentiment, the same U.S. court ruling that bolstered gold’s safe-haven demand also unsettled oil markets. The appeals court’s decision to reinstate Trump-era tariffs reversed a trade court’s earlier move to block the measures, renewing uncertainty over U.S. trade policy.
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