Gold fell to around $3,300 per ounce on Friday, approaching its lowest level in nearly four weeks, despite a subdued dollar, as investors continued to assess the Fed’s rate cut outlook. Reports indicate President Trump may announce his Fed Chair nominee as early as September or October, likely favoring a candidate supportive of looser financial conditions.
Fed Chair Powell, for his part, noted that the absence of new tariffs supports disinflation, creating room for multiple rate cuts if aggressive levies are held off beyond the July 9 deadline. On the data front, US GDP was revised to show a 0.5% contraction in Q2, further supporting dovish expectations, though this was offset by jobless claims falling to a five-week low and durable goods orders posting its biggest gain in 11 years. Markets now await the PCE inflation report later for further direction. Elsewhere, fading risks in the Middle East reduced demand for safe-haven assets. The bullion is on track for its second weekly loss.
