Gold (XAU/USD) prices dipped overnight from their recent record highs but found support in early Friday trading. A weaker dollar helped buoy the metal, as concerns over the U.S. economy—particularly private spending—countered the Federal Reserve’s insistence that interest rates will remain high for an extended period.
Weak retail sales data and disappointing guidance from Walmart have raised questions about the strength of U.S. consumer spending. While these concerns initially pulled gold off its highs, broader metal markets also saw losses to close the week.
As of 11:00 GMT, spot gold was trading at $2,930.68 per ounce. Traders watching technical patterns will note that gold has formed a head and shoulders pattern on the one-hour chart. The neckline held firm this morning, but if upcoming PMI data impresses, a break could be on the cards.
Despite the pullback, gold remains on track for an eighth consecutive weekly gain, up just over 1.5% for the week. The yellow metal has climbed every week in 2025, driven largely by market unease over Trump’s protectionist trade policies and looming tariffs.
Fresh threats from Trump to impose 25% tariffs on key imports—including automobiles, pharmaceuticals, semiconductors, and lumber—have heightened fears of a global trade war. With reciprocal tariffs now on the table, safe-haven demand for gold has surged. The metal had already been rising in anticipation of Trump’s inauguration, as markets braced for a wave of aggressive trade policies.
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