Gold edged higher in Friday’s early European session.
On Friday, the gold price (XAUUSD) continued to rise during early European trading hours. Growing fears about US President Donald Trump’s tariff intentions provide some support for the precious metal. Furthermore, a drop in US bond yields across the curve adds to the yellow metal’s gains.
Fears of a trade war and lower US bond yields are supporting the precious metal.
The belief that the US Federal Reserve (Fed) will maintain its hawkish posture and keep interest rates higher for longer may drive the non-yielding yellow metal down. Traders will Keep an eye out for the January US Retail Sales report, which is scheduled for release later this Friday.
Daily Market Update: Gold price rises amid fears of a global trade war.
Trump unveiled a roadmap on Thursday for charging reciprocal tariffs against every country that imposes duties on US imports.
However, commerce and economics officials need to study reciprocal tariffs against countries that place tariffs on US goods, and it will not be due until April 1.
Investors are bracing for the US January Retail Sales report, which is due later on Friday.
The US Producer Price Index (PPI) rose 3.5% YoY in January, followed by the 3.3% increase seen in December, according to the US Bureau of Labor Statistics on Thursday. This reading came in above the market expectation of 3.2%.
The annual core PPI rose 3.6% YoY in January, compared to 3.7% (revised from 3.5%) prior, beating the estimation of 3.3%.
The US Initial Jobless Claims for the week ending February 8 fell to 213K, compared to the previous week of 220K (revised from 219K), below the market consensus of 215K.
