Bull prices remained positive at highs around $3,400 as market participants ignored strong US economic data, while shifting focus to the Federal Reserve's (Fed) stance on whether to maintain or cut interest rates next.
However, safe-haven demand was driven by threats to Fed independence, which continued to support bullion prices.
At 9:30 AM, gold was at $3,410, down 0.20% since it opened early Friday in Asian trading.
Gold traded with gains of over 0.43% boosted by a weaker US dollar and US Treasury yields.
Data from the US revealed that the economy grew at a solid pace, exceeding forecasts and preliminary readings for the second quarter of 2025.
The number of Americans filing for unemployment benefits fell, a sign of strength in the labor market. While the economic outlook remains supportive of the USD, the conflict over Fed independence is more favorable to gold.
Bloomberg recently revealed that Fed Governor Lisa Cook is suing President Donald Trump over his attempt to fire her over allegations of mortgage fraud, undermining the central bank’s supposedly open stance.
Heading into the week, traders will be watching for the release of the Fed’s favorite inflation gauge, the core Personal Consumption Expenditures (PCE) Price Index. Core PCE for July is expected to rise to 2.9% annually from 2.8%.
