Gold prices slipped further during Friday's Asian session, trading near three-week lows as investors await the release of U.S. PCE inflation data.
By 3:55 pm AEDT (4:55 am GMT) spot gold was down US$12.90 or 0.5% to $2,864.40 per ounce.
The U.S. dollar remains firm amid risk-off sentiment fueled by President Donald Trump’s tariff threats, while U.S. Treasury yields declined as markets anticipated a more dovish Fed.
Investors reacted to Trump’s confirmation that his proposed 25% tariffs on Mexican and Canadian imports will take effect on March 4, alongside an additional 10% levy on Chinese goods.
The uncertainty deepened following a sharp sell-off in Nvidia, which saw its shares tumble after its earnings report failed to impress investors. This downturn affected other mega-cap tech stocks, amplifying risk concerns across financial markets.
Economic reports on Thursday painted a mixed picture of the US economy. The second estimate of Q4 GDP remained steady at 2.3% annualised growth, but the latest jobless claims data revealed a concerning rise as initial claims jumped by 22,000 to 242,000, marking a three-month high.
Investors are now awaiting the core Personal Consumption Expenditures (PCE) Price Index, due later today. The core PCE is expected to rise 2.6% year-on-year in January, down from 2.8% in December.
