Gold prices recover on Friday ahead of US inflation data

On Friday, the spot price of gold increased by 0.6% to $4,949.99 per ounce, recovering from a near one-week low. Despite this daily gain, the metal recorded a weekly decline of 0.2%, while April US gold futures rose 0.4% to reach $4,968.0. This recovery follows a 3% drop on Thursday when prices fell below the $5,000 support level amid a broader stock market sell-off and concerns over tech sector profit margins. Investors are currently awaiting the US Consumer Price Index data scheduled for release at 13:30 GMT to gauge the future path of interest rates. Earlier in the week, stronger-than-expected US labor market data for early 2026 led to speculation that the Federal Reserve might maintain higher rates for a longer period. Market participants are currently pricing in two 25-basis-point interest rate cuts for the year, with the first anticipated in June. Kyle Rodda of Capital.com noted that increased volatility and psychological 'round' price levels are influencing investor positioning in the market. The gold market's movement remains sensitive to inflation indicators as the asset does not yield interest.