Gold Falters as Dollar Powers Up, Markets Brace for US Inflation Data

Gold price today: The yellow commodity witnessed a drop in price levels on Friday as geopolitical concerns eased. While POTUS imposed a delay on EU tariffs, the US trade court blocked Trump's 'Liberation Day' tariff agenda earlier this week. All these factors together mitigated concerns around trade barriers.

Meanwhile, the US dollar index also showed strength and experienced an upward trajectory, rising to 99.46. Analysts believe that the commodity market is taking a cautious stance with key data releases ahead. While geopolitical concerns might have eased owing to a halt on Trump's tariff policy, tensions still remain high as the outlook ahead remains blurry.

"Gold traded weak, down by $20 at $3,296 on Comex, while multi-commodity exchange (MCX) gold hovered around Rs 95,200, as the US Dollar Index firmed up to 99.46, capping upside momentum in the yellow metal," said Jateen Trivedi, VP research analyst- commodity and currency, LKP Securities.

"The market remains cautious ahead of the Core PCE Price Index release later this evening, a key inflation gauge closely tracked by the Federal Reserve," Trivedi added.

Key Levels to Watch

While gold prices have begun to show signs of softening, volatility continues to cast uncertainty over the outlook. Just a day after the imposition of tariffs was blocked, a US appeals court ruled that the President can uphold his tariff directive under emergency powers.

"I can assure you, American people, that the Trump tariff agenda is alive, well, healthy, and will be implemented to protect you, to save your jobs and your factories," White House trade advisor Peter Navarro reportedly said. These shifting policy signals continue to fuel tariff-driven volatility in the markets.

"In the short term, gold remains caught between tariff-related uncertainty and dollar-driven volatility. Traders should expect continued range-bound movement with support near Rs 94,000 and resistance around Rs 97,000 in the domestic market," LKP Securities' Jateen Trivedi said.