Gold prices traded in a narrow range during Friday's Asian deals as investors looked ahead to closely watched United States macroeconomic releases, including fourth-quarter gross domestic product (GDP) and the personal consumption expenditures (PCE) price index, while also watching for a potential ruling from the Supreme Court of the United States on President Donald Trump’s tariff measures.
By 3 pm AEDT (4 am GMT), spot gold was trading 0.1% lower at around US$4,991.44 per ounce — just below the key US$5,000 psychological level.
The precious metal has found support from persistent geopolitical tensions in the Middle East, which have kept safe-haven demand firm amid concerns over a potential military conflict involving the U.S. and Iran.
However, bullion’s upside has been constrained by a firm U.S. dollar, which has consolidated recent weekly gains as minutes from the Fed’s most recent policy meeting indicated that officials remain cautious about cutting interest rates too quickly.
In the U.S., data released this week showed a notable drop in initial jobless claims to 206,000 for the week ended 14 February, the largest weekly decline in claims recorded since November, bolstering evidence of resilience in the labour market.
Looking ahead, the release of the US Q4 GDP report and the PCE price index — the Federal Reserve’s preferred gauge of inflation — will be key catalysts for gold, as will broader sentiment around global growth, monetary policy and risk sentiment.
Markets are anticipating U.S. GDP growth of about 3% in the fourth quarter and core PCE inflation rising roughly 2.8% in December, following the previous month’s 2.8% increase.
