(Bloomberg) -- Gold fell, putting it on track for an almost 2% weekly loss, amid a technical pullback in prices ahead of key US economic data.
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The precious metal fell as much as 0.8% on Friday, as investors awaited the US personal consumption expenditures price index -- the Federal Reserve's preferred inflation metric due later today. Markets will be assessing the report, which will offer an insight into real consumer spending and wage growth in April, for clues on how President Donald Trump's global trade war has impacted the economy.
The selloff was also driven by technical factors ahead of the data release, according to Kelvin Wong, senior analyst at Oanda Asia Pacific Pte.
"The price action in gold has twice failed to break above the key near-term resistance level of $3,328 -- both in the US session yesterday and again early in the Asian session today," he said.
Still, despite the declines this week, bullion's haven appeal remains intact as markets were once again rattled by uncertainties surrounding Trump's tariff agenda, after a federal appeals court on Thursday gave Trump a temporary reprieve from a ruling threatening to throw out the bulk of his planned levies.
Tensions with China also resurfaced this week, with US Treasury Secretary Scott Bessent characterizing trade talks with Beijing as "a bit stalled." Earlier in the week, the White House announced it would start revoking Chinese student visas, while also introducing new restrictions on the sales of chip design software -- prompting an angry rebuke from Beijing.
All that is likely to reinforce the haven appeal of gold, which Goldman Sachs Group Inc. said this week would remain a hedge against inflation in long-term portfolios along with crude.
Spot gold was down 0.5% to $3,300 an ounce as of 1:40 p.m. in Singapore. The Bloomberg Dollar Spot Index edged up, after fluctuating in the previous session. Silver, palladium and platinum all declined.