Gold is set for its largest weekly drop since November

• Gold drops, set for a largest weekly decline since November
   
• XAUUSD hits $2,855, weekly loss of 2.7%
   
• Focus shifts to US PCE data, due later today
   
• Trump's tariff announcement adds economic uncertainty
   
• Gold ETF inflows rise amid trade tensions, policy speculation

Gold prices retreated on Friday, set for their largest weekly drop since November as a stronger US dollar weighed on demand.

XAUUSD fell to $2,855 an ounce, bringing its weekly decline to 2.7%.
 

Investor focus is now turning to the Federal Reserve's preferred inflation measure, the PCE data, for potential signals on future rate policy.

US PCE reading:

• MoM: 0.3% – expected, 0.3% – previous
   
• YoY: 2.5% – expected, 2.6% – previous

Meanwhile, President Donald Trump confirmed import tariffs fueling economic uncertainty.

The announcement on Thursday stated that 25% tariffs on goods imported from Canada and Mexico would take effect on Tuesday, along with an additional 10% duty on Chinese imports, following the barriers implemented earlier this month.

Gold continues to attract safe-haven demand, with robust ETF inflows and reports indicating that over 600 tons of gold have been moved to New York vaults since December, driven by trade tensions and speculation surrounding monetary policy.

Over the past 27 days, the net asset value of the world's largest gold ETF, SPDR Gold Shares, has risen by 7%, reaching $83.9 billion from $78.2 billion on January 31.