Gold inched lower on Friday on some profit-taking, but was on track for a weekly rise as uncertainty around U.S. President Donald Trump’s tariff plans firmed demand, while investors awaited U.S. non-farm payrolls data.
Spot gold eased 0.2% to $2,904.98 an ounce as of 0325 GMT. Bullion has gained 1.6% so far this week.
U.S. gold futures lost 0.5% to $2,911.90.
Trump on Thursday suspended the 25% tariffs he imposed this week on most goods from Canada and Mexico, the latest twist in a fluctuating trade policy that has whipsawed financial markets and fanned worries over inflation and a growth slowdown.
The ongoing trade tensions, inflation uncertainty, and a weaker dollar signaling a slowing economy, are all bullish for gold, Shah said.
The U.S. dollar index was hovering near a four-month low.
Trump’s policies, widely seen as likely to stoke economic uncertainties, have helped safe-haven gold rise more than 10% so far this year.
Bullion is seen as a hedge against political risks and inflation, but higher interest rates dampen the non-yielding asset’s appeal.
Spotlight is on the non-farm payrolls report due at 8:30 a.m. EST which is expected to show a gain of 160,000 jobs for February, a Reuters survey showed.
Spot silver fell 0.4% to $32.51 an ounce and platinum firmed 0.1% to $967.58, while palladium edged 0.1% lower to $941.21.
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