Gold prices fell slightly in Asian trade on Friday

 

Gold prices edged lower in Asian trading on Friday as investors remained cautious ahead of key U.S. economic data and comments from Federal Reserve officials that could influence interest rate expectations.

Spot gold slipped 0.2% to $2,308.45 per ounce by mid-morning in Asia, while U.S. gold futures dipped 0.3% to $2,312.10. The slight decline comes after a relatively stable week for the yellow metal, which has seen strong demand in recent months amid global economic uncertainty and geopolitical tensions.

Traders are awaiting the release of the U.S. Personal Consumption Expenditures (PCE) price index – the Fed’s preferred inflation gauge – scheduled for later in the day. The data could provide fresh clues on the central bank’s next policy move.

Despite Friday's decline, analysts note that gold continues to enjoy strong long-term support, driven by central bank purchases, persistent inflation concerns, and safe-haven demand.

“Gold is taking a breather today, but the underlying bullish sentiment remains intact,” said one commodities strategist. “Much will depend on the inflation numbers and how they shape market expectations on rate cuts.”

The U.S. dollar held steady, while Treasury yields remained elevated, putting mild pressure on non-yielding assets like gold.