Market analysis on behalf of Bas Kooijman is the CEO and Asset Manager of DHF Capital S.A
Gold prices edged lower on Friday and were on track for a weekly loss, as investors awaited the US PCE inflation report for fresh guidance on the Federal Reserve’s policy outlook.
The short-term outlook remains clouded. A federal court appeal temporarily reinstated Trump’s sweeping tariffs, adding uncertainty to trade policy expectations and potentially providing some underlying to bullion.
However, Fed officials continued to signal a cautious stance, with San Francisco Fed President Mary Daly and Chicago Fed’s Austan Goolsbee both indicating that interest rates should remain steady for now. This tone s US Treasury yields and weighs on non-yielding assets like gold.
Geopolitical risks could continue to dampen investor sentiment and demand for safe-haven assets. In Eastern Europe and the Middle East, tensions remain elevated and could drive demand for gold.
Looking ahead, the PCE data remains a key event for markets. A downside surprise could revive bets on imminent rate cuts and gold into next week, while stronger inflation would likely reinforce Fed caution and weigh further on the precious metal.
