Gold prices edged higher during Asian trade on Friday, with spot bullion trading near US$3,650 per ounce as markets digested United States Federal Reserve policy signals, economic data, and trade headlines.
By 3:55 pm AEST (5:55 am GMT), spot gold was up $8.89 or 0.3% at $3,653.08 per ounce.
The metal is on track for a fifth straight weekly gain despite a more measured tone from Fed officials.
The Fed lowered interest rates by 25 basis points as expected, but its latest Summary of Economic Projections suggested two further cuts this year.
Fed Chair Jerome Powell described the move as a “risk management" policy action and maintained a cautious, meeting-by-meeting stance on future easing.
U.S. data on Thursday provided mixed signals. Jobless claims fell by 33,000 to 231,000 for the week ending September 13, easing some concerns after the prior week’s surge.
Meanwhile, the Philadelphia Fed Manufacturing Index jumped to 23.2 in September, well above forecasts of 2.3, pointing to stronger activity.
Gold’s momentum remains tied to the U.S. dollar, which recovered after Powell’s comments and encouraging data but remains vulnerable to shifts in sentiment.
