Gold prices advanced during Asian trade on Friday as safe-haven demand returned, pushing the metal back toward record territory and setting up a fourth straight weekly gain.
By 3:55 pm AEST (5:55 am GMT), spot gold was trading $20.71, or 0.6%, higher at US$3,654.82 per ounce.
The rebound came as dip buyers re-entered the market after Thursday’s pullback, with gold once again pushing above the $3,650 resistance level.
Investor focus has shifted to the preliminary Michigan consumer sentiment survey, which is expected to provide fresh clues on the Federal Reserve’s policy outlook.
Markets are widely pricing in three rate cuts this year, including a potential jumbo reduction in September.
According to CME Group FedWatch Tool, traders see a 92.7% chance of a 25 basis point cut and a 7.3% probability of a 50 basis point move at next week’s meeting.
Despite a modest rebound in the United States dollar, gold is drawing renewed haven demand as tariff concerns weigh on sentiment.
Among data releases, U.S. consumer prices rose 0.4% in August, double July’s pace, bringing the annual inflation rate to 2.9% - the highest since January but still in line with expectations.
