Gold touches all-time high of $2,954 amid trade policy uncertainty.
Trump expands tariffs to lumber and soft commodities, adding market jitters.
US data mixed: Manufacturing PMI improves, but Services PMI contracts.
Gold price slides late on Friday, poised to end the week positively, accumulating eight straight weeks of gains that pushed the yellow metal to all-time highs of $2,954. At the time of writing, the XAU/USD trades at $2,940, down 0.15%.

The financial markets' narrative has not changed as US President Donald Trump continues with rhetoric related to tariffs. In addition to imposing 25% tariffs on cars, pharmaceuticals and chips, Trump broadened duties to lumber and other soft commodities.

This fueled the rally in Bullion prices as investors seeking safety drove prices higher amidst uncertainty about US trade policies. Meanwhile, geopolitics took a second stage as there was some progress in the discussion to end the Russia-Ukraine war, which relieved the markets.
Data-wise, business activity in the United States was mixed. The manufacturing PMI improved. Conversely, the Services PMI plunged for the first time since January 2023.

Other data showed that Existing Home Sales plunged, and the University of Michigan (UoM) Consumer Sentiment Final reading for February deteriorated further.
Daily digest market movers: Gold price fails to capitalize on US yields drop
The US 10-year Treasury bond yield falls nine basis points (bps) and yields 4.416%.
US real yields, which correlate inversely to Bullion prices, drop four basis points to 1.996%, a tailwind for Bullion prices.
US S&P Global revealed the Manufacturing PMI in February expanded by 51.6, up from 51.2, exceeding forecasts. The Services PMI plummeted from 52.9 to 49.7.
The University of Michigan Consumer Sentiment Index in February dipped from 71.1 to 64.7. American consumers' inflation expectations for one year rose from 3.3% to 4.3% as foreseen, and for a five-year period, they are anchored at 3.5%, up from 3.2% revealed in the previous month.
The Federal Reserve's Meeting Minutes from Wednesday revealed that Trump's trade and immigration policies fueled concerns over rising prices.
The World Gold Council revealed that central bank purchases rose more than 54% YoY to 333 tonnes following Trump's victory.
Money market fed funds futures are pricing in 50 basis points of easing by the Fed in 2025.

Source: Fxstreet