Gold prices saw a decline on Friday as the dollar gained ground ahead of a significant U.S. inflation report. Nevertheless, bullion remained poised for slight monthly increases, driven by its reputation as a safe-haven asset amid ongoing U.S. trade tariff concerns.
In the UAE, gold rates have experienced a decline, with 24-carat gold dropping by AED3.5 to a new price of AED345. Likewise, 22-carat, 21-carat, and 18-carat gold also saw reductions of AED3.25, AED3, and AED2.75, resulting in new prices of AED321, AED307.75, and AED263.75, respectively.
Spot gold dropped 0.4 percent to $2,864.94 per ounce, while Gold Futures set to expire in April decreased by 0.6 percent, reaching $2,877.80 an ounce by 01:44 ET (06:44 GMT).
Gold set for 2 percent monthly gain, US PCE data awaited
Gold prices continued to face pressure on Friday as market participants awaited the U.S. Personal Consumption Expenditures (PCE) price index, which is the Federal Reserve’s favored inflation measure, for additional insights on interest rate trends. The US Dollar Index rose by 0.1 percent, making gold more costly for international buyers.
Despite these challenges, persistent worries regarding global trade tensions have lent some support to bullion as a safe-haven investment. The yellow metal was on track to achieve nearly a 2 percent increase this month. Investors became more cautious following Trump’s reaffirmation of plans to implement a 25 percent tariff on imports from Mexico and Canada, along with a new 10 percent tariff on Chinese goods.
While gold has seen some demand as a safe-haven asset amid these trade concerns, the short-term outlook largely depends on how the PCE inflation data influences Federal Reserve rate expectations.
Other precious metals also saw declines due to the strength of the dollar. Platinum Futures dropped 0.4 percent to $948.55 per ounce, while Silver Futures fell by 1 percent to $31.495 per ounce.
Copper falls on tariff concerns, China stimulus measures eyed
Copper prices continued to retreat amid worries about Trump’s tariff policies, which have adversely affected industrial metals. Earlier in February, the U.S. president announced a 25 percent tariff on all steel and aluminum imports into the country, scheduled to take effect on March 12.
Benchmark Copper Futures on the London Metal Exchange decreased by 0.7 percent to $9,354.40 a ton, while April Copper Futures fell by 1 percent to $4.549 a pound.
