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Gold prices edged lower on Friday as the dollar firmed to a near one-month high, while investors awaited a key inflation report due later in the day for more cues on U.S. monetary policy trajectory.
FUNDAMENTALS
* Spot gold dipped 0.1% to $4,995.91 per ounce by 0149 GMT.
* U.S. gold futures for April delivery were up 0.3% at $5,013.60.
* The dollar was poised to cap its strongest weekly performance since October, buoyed by a run of better-than-expected economic data, a more hawkish Federal Reserve outlook and as tensions between the U.S. and Iran kept markets on edge.
* Mainland Chinese, Hong Kong, Singapore and Taiwan markets were closed for the Lunar New Year holidays, which means low volumes and possibly volatile moves, traders said.
* Investors awaited the Personal Consumption Expenditure (PCE) data, the Fed's preferred inflation gauge, for more cues on U.S. monetary policy. Non-yielding bullion tends to do well in low-interest-rate environments.
* Markets currently expect three 25-basis-point rate cuts this year, according to CME's FedWatch Tool.
* Goldman Sachs said in a note that it expects significant upside risks to its gold end-2026 price forecast of $5,400 on further private sector diversification when expressed through call-option structures.
* It also said it continues to see the medium-term trajectory for gold prices as upward, potentially with elevated volatility.
* U.S. President Donald Trump warned Iran on Thursday that it must make a deal over its nuclear programme or "really bad things" will happen, and set a deadline of 10 to 15 days, drawing a threat from Tehran to retaliate against U.S. bases in the region if attacked.
* Spot silver eased 0.1% to $78.29 per ounce.
* Spot platinum edged 0.3% down to $2,064.27 per ounce, while palladium lost 0.5% to $1,677.19.
(Reporting by Ishaan Arora; Editing by Subhranshu Sahu)





















