Gold Prices Set for Weekly Loss as Markets Await US Inflation Data

Dollar Pressure and Market Dynamics Spot gold prices were trading at $5,005.81 per ounce, showing a limited daily increase of 0.18%, yet remaining on track for a weekly loss of approximately 1%.
With markets in China, Hong Kong, Singapore, and Taiwan closed for the Lunar New Year holiday, prices have remained largely flat, supported by strong buying at lower levels.
Meanwhile, the dollar index is heading toward its strongest weekly performance since October, driven by better-than-expected economic data, the Fed's hawkish stance, and geopolitical tensions.
Fed Expectations and Long-Term Forecasts Market participants are closely monitoring the December Personal Consumption Expenditures (PCE) data for clues regarding the Federal Reserve's interest rate path.
Current market expectations are centered on the central bank implementing its first rate cut in June.
According to an analysis by Goldman Sachs, gold prices could reach $5,400 per ounce by the end of 2026.
This projection is supported by accelerating central bank purchases and the anticipated investor response to potential interest rate cuts.
Spot silver fell 0.6% to $77.88, while spot platinum decreased by 0.3% to $2,063.63.
Palladium dropped 0.4% to $1,677.71, heading toward a weekly close in negative territory.