FX.co ★ Gold Holds Pullback

Gold prices were recorded at $3,300 per ounce on Friday, experiencing a minor pullback and positioned for an approximate 2% decrease over the week. This movement comes as robust economic data offset the demand for safety prompted by renewed trade war risks. Recent data indicated that personal income in the United States increased significantly more than anticipated in April, with both expenditure and prices aligning with expectations. These figures provide the Federal Reserve with more flexibility to retain interest rates for an extended duration before restarting its easing cycle, as suggested by policymakers in various statements this week, thereby raising the opportunity cost of holding gold. Meanwhile, US President Donald Trump asserted that China violated the current trade agreement with the US, though he withheld specific details, fueling speculation that the administration might seek to reignite its trade conflict with the world's second-largest economy. This development followed closely after the President's successful appeal to a Federal court, which lifted the blockage on Trump's reciprocal tariff package.