Gold experienced a pullback on Friday, falling 0.5% to $3,300.59 per ounce, with the decline driven primarily by a stronger U.S. dollar that rose 0.2%.
This week has seen gold lose 1.7% of its value as markets enter a consolidation phase. The focus is now on the upcoming Personal Consumption Expenditures (PCE) report – the Fed’s preferred inflation gauge – expected to show minimal monthly change at 0.1% and annual inflation at 2.2%.
San Francisco Fed President Mary Daly indicated the possibility of two interest rate cuts this year, though the Fed remains cautious about ensuring inflation sustainably reaches its 2% target.
Additional market factors include renewed tariff uncertainties and stalled U.S.-China trade talks. Other precious metals also declined, with silver down 0.8% and palladium falling 0.3%.