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Gold prices rose approximately 1% during Friday's Asian trading session, reversing a prior decline to near $5,050. Buyers remain resilient as the precious metal continues to find support ahead of key U.S. economic data releases, including the GDP revision and Personal Consumption Expenditures (PCE) Price Index. The ongoing Middle East conflict has intensified demand for safe-haven assets, with geopolitical tensions acting as a tailwind for gold. Traders are closely monitoring whether the upward momentum will hold amid mixed signals from global markets. The rise in gold highlights its role as a hedge against geopolitical risks and inflationary pressures. The Middle East war has heightened uncertainty, pushing investors toward non-yielding assets like gold. However, the upcoming U.S. GDP and PCE data could influence the dollar's strength, which in turn affects gold prices. A weaker dollar typically supports gold, while stronger data might pressure it. Market participants are weighing these conflicting factors. For traders, the focus now shifts to the U.S. economic reports and potential shifts in central bank policies. If the Middle East conflict escalates further, gold could test higher resistance levels. Conversely, positive U.S. data might trigger a pullback. Investors should monitor key support/resistance levels and the Federal Reserve's response to inflation data. The coming weeks will be critical in determining whether gold sustains its recent gains or faces profit-taking.
