Gold price slips as strong US data lifts dollar

WEB DESK: Gold prices edged lower on Friday as stronger-than-expected US economic data lifted the dollar and clouded the outlook for interest rate cuts from the Federal Reserve. Investors are now awaiting a key inflation reading later in the day, which could set the tone for the metal in the coming weeks.

Spot gold slipped 0.2 percent to $3,741.21 per ounce in early Asian trade, though it remained 1.6 percent higher for the week. US gold futures for December delivery were flat at $3,771.30. The dollar index hovered near a three-week peak, making dollar-priced bullion more expensive for buyers using other currencies.

“Gold is finding it difficult to push past the $3,800 mark as the dollar regains strength,” said Tim Waterer, chief market analyst at KCM Trade. He added that while President Donald Trump’s fresh round of tariffs on imports, starting October 1, could limit any steep fall, traders remain cautious.

The caution comes after US data showed weekly jobless claims declined, while second-quarter GDP was revised higher on the back of strong consumer spending and business investment. All eyes are now on the personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge, which is expected to show a 0.3 percent monthly rise and a 2.7 percent annual increase for August.

“Traders are hesitant to commit to gold until they see what the PCE data brings, especially after the strong GDP numbers,” Waterer said.

Some policymakers, however, continue to argue for rate cuts. Fed member Stephen Miran suggested aggressive easing may be needed to protect jobs, downplaying inflation risks from tariffs. Historically, gold performs well in a low-interest-rate environment.

Other precious metals

Spot silver dropped 0.6 percent to $44.96 per ounce. Platinum climbed 1.6 percent to $1,553.35, hovering near a 12-year high, while palladium rose 1.4 percent to $1,267.13. All three were on track for weekly gains.

Gold prices in Pakistan

In Pakistan, local bullion prices mirrored the global slide. According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of 24-karat gold per tola fell by Rs2,000 on Thursday, settling at Rs396,800.

The 10-gramme rate also dropped by Rs1,714 to Rs340,192. A day earlier, prices had been steady at a record Rs398,800 per tola.

September’s rollercoaster ride

September has been a volatile month for gold in the local market, with prices repeatedly breaking records before pulling back. On September 1, gold stood at Rs370,700 per tola. By September 23, it had surged to an all-time high of Rs398,800, before slipping again this week.

The frequent swings have left jewellers and investors cautious, with many waiting to see how international prices and the rupee’s performance shape the trend in the days ahead.

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