Gold held its recent decline below $3,340 per ounce on Friday, on track for its first weekly loss in three, as strong US economic data reduced the urgency for the Fed to cut interest rates. Retail sales rebounded more than expected in June, while weekly initial jobless claims unexpectedly fell to a three-month low—both signaling resilience in the economy despite the impact of tariffs.
Reflecting this strength, Fed Governor Adriana Kugler said it would be appropriate to keep rates steady for some time. However, San Francisco Fed President Mary Daly maintained her outlook for two rate cuts this year. Nevertheless, safe-haven demand for gold remained supported by ongoing trade uncertainties, with President Trump recently announcing plans to notify over 150 trade partners of their tariff rates. Geopolitical tensions, including the escalating Russia-Ukraine conflict and unrest in the Middle East, further enhanced gold’s appeal as a safety asset.
