Gold prices set for weekly gains on tariff caution; PCE data awaited

Investing.com-- Gold prices traded in a steady manner Friday, stabilizing after a recent drop from record highs as fresh tariff measures in the U.S. kept traders keen on safe havens.

At 05:50 ET (09:50 GMT), Spot gold was largely flat at $3,748.70 an ounce, having climbed to a record high of $3,791.11/oz earlier this week, while gold futures rose 0.2% to $3,778.35/oz.

Both the spot price and the futures contract are on course for weekly gains of almost 2%, adding to the year’s hefty rise. 

"Gold has gained almost 43% so far this year, supported by a weaker dollar, central bank buying, inflows into ETF holdings and geopolitical tensions," said analystst at ING, in a note. "Total known gold ETF holdings have increased by more than 12.8moz this year to stand at 96.2moz as of yesterday (the highest since October 2022) amid rising demand for safe haven assets."

Tariffs uncertainty provides support

The yellow metal received a boost late Thursday after U.S. President Donald Trump announced a slew of trade tariffs, most notably a 100% tariff on all pharmaceutical imports.

The move ramped up uncertainty over the global economic impact, and sparked risk-off moves across broader financial markets, in turn spurred some safe haven flows into gold.

However, gold was pulled off its record highs this week by growing uncertainty over U.S. interest rates, and accompanying gains for the U.S. dollar.

Second-quarter gross domestic product data showed the U.S. economy grew much faster than expected, while weekly jobless claims data also showed some improvement. 

The data was accompanied by a host of cautious statements from Fed officials, with Chair Jerome Powell touting heightened economic risks from sticky inflation and a weakening labor market. 

PCE inflation data awaited  

The focus is now on the release of key U.S. PCE price index data– the Fed’s preferred inflation gauge– for more cues on interest rates.

The print is due later on Friday and is expected to show headline inflation remaining sticky in August. Core PCE inflation is also expected to remain well above the Fed’s 2% annual target. 

Sticky inflation gives the Fed less impetus to cut interest rates, while "a tame inflation could strengthen the case for interest rate cuts and would further support the precious metals complex," ING added.

Elsewhere, spot platinum rose 1.3% to $1,549.95/oz, while spot silver gained 0.5% to $45.362/oz. 

Among industrial metals, benchmark copper futures on the London Metal Exchange dropped 0.5% to $10,207.70 a ton, and COMEX copper futures fell 0.3% to $4.7438 a pound. 

"Recent reports suggest that Peru’s massive Antamina mine is set to increase copper production by around 20% to 450kt in 2026 and aims at around 400kt annually in the following years," ING said.

"If achieved, Antamina could overtake Freeport-McMoran’s Cerro Verde and MMG Ltd’s Los Bambas, positioning itself as one of the country’s top copper producers. The projected increase is largely driven by a planned expansion to replenish ore at the current pit. Meanwhile, copper output from the mine for the year is expected to reach around 380kt."

Ambar Warrick contributed to this article