Gold prices edged higher on Friday after falling to a near one-week low in the previous session, as investors turned their attention to upcoming US inflation data for guidance on the outlook for interest rates.
Spot gold rose 0.6 per cent to $4,949.99 per ounce by 06:26 GMT, though it remained down 0.2 per cent for the week. US gold futures for April delivery gained 0.4 per cent to $4,968.00 per ounce.
The rebound followed a sharp decline on Thursday, when bullion dropped about 3 per cent and slipped below the $5,000-per-ounce level amid broad-based selling. The move came as equity markets retreated, dragging precious metals lower.
Kyle Rodda, senior market analyst at Capital.com, said heightened volatility and key price levels had contributed to accelerated price swings. He noted that precious metals had fallen alongside equities without a clear macroeconomic trigger.
Gold also came under pressure earlier in the week after US labour market data showed stronger-than-expected job growth at the start of 2026. The figures reinforced expectations that the Federal Reserve could keep interest rates elevated for longer, dampening the appeal of non-yielding assets such as bullion.
Investors are now awaiting US inflation data due later on Friday, which could influence the central bank’s policy trajectory. Markets are currently pricing in two quarter-point rate cuts this year, with the first anticipated in June.
Asian equities retreated from record highs on Friday, as concerns over shrinking profit margins in the technology sector weighed on shares, including those of Apple.
In physical markets, gold traded at a discount in India for the first time in a month, as volatile prices curtailed demand. In contrast, buying interest in China remained firm ahead of Lunar New Year celebrations.
Among other precious metals, spot silver rose 1.5 per cent to $76.31 per ounce after tumbling 11 per cent on Thursday, although it remained on track for a weekly decline of about 2.1 per cent.
Spot platinum advanced 0.9 per cent to $2,018.44 per ounce, while palladium climbed 2.2 per cent to $1,652.31. Both metals were still set to register losses for the week.