Gold weakened to around $3,740/oz on Friday as the US dollar strengthened after the release of solid economic data dampened expectations of a Fed interest rate cut. New jobless claims fell and second-quarter GDP growth was revised higher thanks to consumer spending and business investment, bringing the probability of a rate cut next month down to 85% from 90% ahead of tonight's PCE release—the Fed's favorite inflation indicator.

Meanwhile, safe-haven sentiment remains supported by the risk of new tariffs announced by US President Donald Trump starting October 1: 100% on imported brand-name drugs, 25% on heavy-duty trucks, 50% on kitchen cabinets, and 30% on upholstered furniture. The market is awaiting the PCE for clues on the next policy direction, with gold at the crossroads between pressure from yields/dollar and support from trade uncertainty.

At the time of writing, the gold price is at $3,737.

Disclaimer:

This article is analytical in nature and is not a definitive reference. Consider fundamental and technical developments in trading before making any investment decisions.

Source: Newsmaker.id