Spot gold held its ground at $3,748.41 per ounce, as of 0605 GMT, but has jumped 1.6% so far this week

Gold steadied on Friday as U.S. data tempered expectations for further Federal Reserve rate cuts this year, while new tariffs announced by U.S. President Donald Trump provided some support ahead of a key inflation report due later in the day.

Spot gold held its ground at $3,748.41 per ounce, as of 0605 GMT, but has jumped 1.6% so far this week.

Physical gold demand in China weakened further this week, while steady buying persisted in other major Asian hubs despite the high prices in anticipation of further gains.

Gold is trading in somewhat sluggish fashion, with traders reluctant to get on board with any real conviction in case the core PCE data even vaguely mirrors the jump higher in GDP print, said KCM Trade Chief Market Analyst Tim Waterer.

Data released on Thursday showed that weekly U.S. jobless claims declined, while the economy grew faster than estimated in the second quarter on strong consumer spending and business investment.

Investors lowered their expectations for Fed rate cuts in October and December, with probabilities dropping to 85% and 60% from earlier levels of 91% and 76%, respectively, following U.S. economic data, according to the CME FedWatch Tool.

Trump’s latest tariff announcement keeping traders on alert, and the resulting safe-haven flows may act to limit the extent of any immediate downside for gold, said Waterer.

On Thursday, Trump announced a new round of tariffs on a broad range of imported goods starting October 1. The country’s focus is now on the personal consumption expenditures (PCE) price index data due at 1230 GMT.

Safe-haven bullion tends to perform well in a low-interest-rate environment.