Gold prices (XAU/USD) held steady on Friday (4/18) after falling from an all-time high of $3,358 as investors booked profits during the long Easter holiday. Significant uncertainty over US President Donald Trump's tariffs on imports into the US and ongoing geopolitical tensions could support gold prices, which are known as safe-haven assets.

On the other hand, Federal Reserve (Fed) Chairman Jerome Powell was hawkish, reducing the chances of a Fed rate cut in June. This, in turn, could lift the Greenback and weigh on USD-denominated commodity prices. Powell said that a weak economy and high inflation could be contrary to the Fed's goals and allow for a stagflation scenario. Mary Daly of the Federal Reserve (Fed) is scheduled to speak later on Friday. Trading volumes are likely to be light on Good Friday.

Gold prices down on Good Friday

"Gold remains strongly supported by a generally weaker dollar, uncertainty surrounding tariff announcements and concerns about a global recession," said Lukman Otunuga, senior research analyst at online trading broker FXTM.

US Initial Jobless Claims for the week ending April 12 fell to 215,000, the US Department of Labor (DOL) said on Thursday. This was lower than the initial estimate and lower than the previous week's reading of 224,000 (revised from 223,000).

Continuing Jobless Claims for the week ending April 5 rose by 41,000 to 1.885 million from 1.844 million previously (revised from 1.85 million).

US Building Permits rose 1.6% to 1.482 million in March, beating the estimate of 1.45 million. Meanwhile, Housing Starts fell to 1.324 million in March from 1.494 million in February (revised from 1.501 million).

Money market traders have priced in nearly 86 bps of Fed rate cuts by the end of 2025, with the first cut expected in July, according to the CME FedWatch tool. (Newsmaker23)

Source: FXstreet