Gold dips ahead of US PCE data

Gold prices eased to around $3,740 per ounce on Friday, nudged lower by a rising US dollar after stronger-than-expected economic data tempered expectations for a Federal Reserve rate cut ahead of the key inflation report.

New applications for unemployment benefits fell last week, while the economy expanded faster than initially estimated in the second quarter, driven by robust consumer spending and business investment.

Market expectations for a rate cut next month have fallen to 85% from 90% before the jobs data. Investors are now focusing on the PCE price index later today, the Fed’s preferred inflation gauge, for further guidance on policy direction.

Meanwhile, gold’s safe-haven appeal was reinforced by fresh tariff threats, with US President Donald Trump announcing plans to impose tariffs from October 1, including 100% on imported branded drugs, 25% on heavy-duty trucks, 50% on kitchen cabinets, and 30% on upholstered furniture.