Gold set for first weekly drop in nine; focus on US inflation data
Fri Feb 28 2025
Gold edged higher on Friday but was set to snap an eight-week winning streak on a stronger dollar, while investors turned their focus to a key U.S. inflation data for cues into the Federal Reserve's monetary policy trajectory.
FUNDAMENTALS
* Spot gold was up 0.1% at $2,879.09 an ounce, as of 0030 GMT.
* Bullion is down nearly 2% for the week, its biggest weekly drop since November 25, 2024, and on track for its first weekly decline after eight consecutive gains.
* U.S. gold futures eased 0.2% to $2,889.60.
* The dollar index was set for a weekly gain of 0.6% so far, making greenback-priced gold more expensive for foreign buyers.
* Trump said on Thursday that his proposed 25% tariffs on Mexican and Canadian goods will take effect March 4 along with an extra 10% duty on Chinese imports because deadly drugs are still pouring into the U.S. from those countries.
* Philadelphia Federal Reserve Bank President Patrick Harker on Thursday expressed support for continuing to hold short-term U.S. borrowing costs in their current range of 4.25%-4.50.
* Gold is seen as a hedge against political risks and inflation, but higher interest rates dampen the non-yielding asset's appeal.
* Investors now await the Personal Consumption Expenditures (PCE) data, the Fed's preferred inflation measure, due later in the day, for further clues on the U.S. economic outlook.
* Spot silver was steady at $31.25 an ounce, platinum fell 0.1% to $947.55 and palladium eased 0.4% to $915.63.