Gold prices hit a fresh high on Friday and were set for a fifth straight weekly gain, as market participants worried about U.S. tariff threats while awaiting a key inflation report to assess the Federal Reserve’s policy path.
FUNDAMENTALS
* Spot gold was up 0.1% at $2,795.92 per ounce, as of 0035 GMT, rising about 1% so far in the week. Earlier in the session, prices hit an all-time high of $2,799.71.
* President Donald Trump said on Thursday that the United States would put a 25% tariff on imports from Mexico and Canada, repeating his warning to the two countries.
* Trump’s tariff plans are widely perceived as inflationary and have potential to trigger trade wars, driving up safe-haven demand for bullion as it is traditionally seen as a hedge against price pressures and geopolitical uncertainty. * Amid concerns about Trump’s tariff plans, 12.9 million troy ounces of gold have been delivered to COMEX-approved warehouses since late November, raising stocks there by 73.5% to 30.4 million ounces, the highest since July 2022.
* Investors now await the December U.S. personal consumption expenditures (PCE) price index report due later in the day.
* Data showed on Thursday that U.S. economic growth slowed in the fourth quarter, but remained robust enough for investors to expect the Fed to lower rates only gradually this year.
* The Fed kept interest rates steady on Wednesday and Chair Jerome Powell said inflation and jobs data would determine when another easing would come.
* Elsewhere, the European Central Bank cut borrowing costs by 25 basis points, as widely expected, and left the door open to further cuts.
* Spot silver gained 0.4% to $31.54 per ounce, platinum added 0.1% to $967.80, and palladium shed 0.2% to $987.10.
* Silver and platinum were poised for weekly gains, while palladium was set for a loss.
DATA/EVENTS (GMT) 0630 France GDP Preliminary QQ Q4 0900 Germany GDP Flash QQ SA, GDP Flash YY NSA Q4 1000 EU GDP Flash Prelim YY, GDP Flash Prelim QQ Q4 1000 EU Consumer Confid. Final Jan 1000 EU Unemployment Rate Dec 1315 EU ECB Refinancing Rate, ECB Deposit Rate Jan 1330 US GDP Advance Q4 1330 US Initial Jobless Clm 25 Jan, w/e 1530 US EIA-Nat Gas Chg Bcf, Nat Gas-EIA Implied Flow 24 Jan, w/e