Gold eases as strong US data lifts dollar; inflation data awaited

Gold edged lower on Friday after stronger-than-expected U.S. economic data cast doubt on the Federal Reserve’s rate cut outlook, bolstering the dollar ahead of a key U.S. inflation report due later in the day.

Spot gold declined 0.2% to $3,741.21 per ounce as of 0147 GMT, though the metal was up 1.6% so far this week.

U.S. gold futures for December delivery were unchanged at $3,771.30. The U.S. dollar index hovered near a three-week high, making greenback-priced bullion more expensive for overseas buyers.

“The return to form of the dollar stands as a potential obstacle between gold and its aspirations for the $3,800 level,” said KCM Trade Chief Market Analyst Tim Waterer, adding U.S. President Donald Trump’s latest tariff announcement could limit any immediate downside for gold.

Trump on Thursday unleashed a fresh round of punishing tariffs on a broad range of imported goods starting October 1.

Meanwhile, data released on Thursday showed weekly U.S. jobless claims declined. The second-quarter GDP grew faster than estimated on strong consumer spending and business investment.

All eyes are now on the personal consumption expenditures (PCE) price index data, the Fed’s preferred inflation measure, due at 1230 GMT, which is expected to show a 0.3% month-on-month rise and a 2.7% year-on-year jump in August, per a Reuters poll.

“Gold is trading in somewhat sluggish fashion, with traders reluctant to get on board the precious metal with any real conviction in case the Core PCE data even vaguely mirrors the jump higher in GDP print,” Waterer said.

Meanwhile, Fed policymaker Stephen Miran advocated for aggressive rate cuts to shield the labour market, downplaying inflation risks from tariffs.

Safe-haven bullion tends to perform well in a low-interest-rate environment.

Spot silver fell 0.6% to $44.96 per ounce, platinum jumped 1.6% to $1,553.35 to hover near 12-year high, and palladium gained 1.4% at $1,267.13. All three metals were headed for weekly gains.