Gold climbs closer to record as traders brace for inflation data

Gold is headed for a consecutive weekly gain that’s pushed it closer to a record high, as investors braced for an inflation reading that may prove key to US monetary easing this year.

Bullion was steady early Friday in Asia at around $3 415 an ounce, after data on Thursday showed the US economy expanded faster than expected. The figures raised concerns about inflation ahead of Friday’s US personal consumption print, which is forecast to accelerate. That could limit the Federal Reserve’s ability to cut rates — a scenario that would typically pose a headwind for gold, as it doesn’t pay interest.

Traders were also weighing comments on Thursday from Fed Governor Christopher Waller — a key contender to succeed Jerome Powell as Fed Chair next year — who said he would support a quarter-percentage point reduction in September and anticipates additional cuts over the next three to six months.

Swaps markets see around an 85% chance of a rate cut next month, though beyond September there’s a high degree of uncertainty over how inflation and the US labor market will evolve as the impact of President Donald Trump’s tariffs feed through to the economy.

Growing concerns about threats to the Fed’s independence have also benefited the precious metal, after Trump this week moved to oust Fed Governor Lisa Cook.

Gold has gained 1.3% so far this week to inch closer to April’s all-time high of about $3,500 an ounce. Trade and geopolitical frictions, inflows to exchange-traded funds and central bank moves to diversify away from the US dollar have also supported bullion’s haven status this year.

Spot gold was little changed at $3 415.73 an ounce as of 8:21 a.m. in Singapore, after gaining 0.6% on Thursday. The Bloomberg Dollar Spot Index was flat, following a 0.3% loss in the previous session. Silver was steady, while platinum and palladium edged lower.

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