By Milad Azar, Market Analyst at XTB MENA
Gold traded in a range near record highs on Friday and is set to close a second consecutive week in positive territory. The metal remained broadly unchanged as investors reacted to the mixed data released yesterday.
While US inflation data came in below expectations, investors questioned its reliability given disruptions caused by the recent US government shutdown. As a result, interest rate expectations remained unchanged.
Despite near-term consolidation, the broader outlook for gold remains constructive. Persistent demand continues to underpin prices, with ongoing purchases by central banks and resilient ETF inflows.
Geopolitical tensions remain a key supportive pillar. Frictions between the US and Venezuela could continue to escalate. In Asia, tensions between China and Japan remain, as well as in the Middle East and Eastern Europe, underscoring the fragile global backdrop.