Gold steadied around $2,750 an ounce on Friday after losing more than 1% in the previous session, as markets weighed demand for safety against pressure from a less dovish Federal Reserve. The latest U.S. data revealed strong personal income and spending figures, a rise in underlying inflation that remained above target, and an unexpected drop in jobless claims. This reinforced the perception that the U.S. economy is resilient to higher borrowing costs and gave the Fed more room to avoid implementing aggressive cuts.

However, political uncertainty in the U.S. is supportive of gold, as the prospect of another Trump presidency raises expectations for expansionary fiscal policy and higher tariffs, prompting investors to hold bullion as a hedge against longer-term inflation risks. In addition, ongoing tensions in the Middle East and the war in Ukraine have further boosted gold's appeal as a safe-haven asset.

Source: Trading Economics