Gold prices held steady on Friday (August 1st), but were set for a third consecutive weekly loss due to pressure from a stronger dollar and diminishing expectations for a US interest rate cut, while uncertainty surrounding US tariffs on trading partners provided support.

Spot gold was steady at $3,293.56 per ounce as of 09:34 GMT. Bullion was down 1.4% for the week. US gold futures edged down 0.1% to $3,344.60. The dollar index hit its highest level since May 29, making gold more expensive for holders of other currencies.

"Gold remains weighed down by diminishing speculation of a Fed rate cut for the remainder of 2025. This week's US GDP, weekly jobless claims, and PCE figures also reinforce the Fed's reluctance to commit to a rate cut," said Han Tan, chief market analyst at Nemo.Money. The Fed kept interest rates in the 4.25%-4.50% range on Wednesday and dampened expectations of a September rate cut.

US President Donald Trump imposed high tariffs on exports from dozens of trading partners, including Canada, Brazil, India, and Taiwan, furthering his plan to restructure the global economy ahead of Friday's trade deal deadline. "However, precious metals should remain supported amid the uncertain impact of US tariffs on global economic growth," Tan said.

US inflation accelerated in June as import tariffs began to raise the cost of some goods. Focus now shifts to US employment data, due later Friday, as investors assess the direction of Federal Reserve policy, with July job growth expected to slow and the unemployment rate projected to rise to 4.2%.

Gold, often considered a safe-haven asset during times of economic uncertainty, tends to perform well in low-interest-rate environments. Demand for physical gold in key Asian markets improved slightly this week as falling prices spurred buying interest, although volatility kept some buyers cautious.

Spot silver fell 0.8% to $36.46 an ounce, platinum fell 1.7% to $1,268.45, and palladium fell 0.5% to $1,185.19. All three metals were headed for weekly losses. (alg)

Source: Reuters