Gold prices rebounded on Friday, recovering from a nearly one-week low recorded in the previous session, as investors awaited key US inflation data for guidance on the Federal Reserve’s interest rate path. Spot gold rose 0.6 per cent to $4,949.99 per ounce by 06:26 GMT, while US gold futures for April delivery climbed 0.4 per cent to $4,968 per ounce. Despite the rebound, gold has posted a slight weekly loss of 0.2 per cent.
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The yellow metal had plunged nearly 3 per cent on Thursday, breaking below the $5,000-an-ounce mark amid selling pressure following a sharp equities rout. “Precious metals came down with equities last night. They didn’t really have much of a macro catalyst,” said Kyle Rodda, senior market analyst at Capital.com. He added that volatility and key price levels can accelerate such movements in gold trading.
Asian shares also retreated from record highs on Friday as concerns over shrinking tech sector margins, particularly at Apple, weighed on sentiment. Earlier in the week, strong US jobs data reinforced expectations that interest rates could remain elevated, limiting bullion’s appeal, since non-yielding assets like gold tend to benefit from lower rates.
Investors are now closely monitoring the upcoming inflation figures, with markets pricing in two potential 25-basis-point rate cuts this year, the first expected in June.
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Elsewhere in the precious metals market, spot silver rose 1.5 per cent to $76.31 per ounce after an 11 per cent drop on Thursday, although it remains set for a 2.1 per cent weekly decline. Spot platinum gained 0.9 per cent to $2,018.44 per ounce, and palladium rose 2.2 per cent to $1,652.31, both metals poised for weekly losses.
Meanwhile, gold in India traded at a discount for the first time in a month due to subdued demand, while China saw strong buying ahead of Lunar New Year celebrations, providing some support to global prices.