Gold rose in Thursday trading following the support of higher-than-expected Producer Price Index (PPI) output.
President Donald Trump's tariff threat increased the appeal of the yellow metal until it triggered a new all-time high of around $2,942 earlier in the week.
At 9.40 am, gold prices were at $2,932.07, up 0.13% since it opened early Friday in Asian trading.
Recently, Donald Trump signed a retaliatory tariff order and insisted that the United States would impose charges on countries that retaliate.
He also said that they would not impose tariffs on any products manufactured in the US.
Gold rose as economic data pushed the US dollar currency weaker with the US Dollar Index (DXY) down 0.61% to 107.32 points.
In addition, US Treasury bond yields have also plunged despite the latest US inflation report from the producer side suggesting that the disinflation process has stalled.
Given the uncertainty over US trade policy and the possibility of a re-acceleration of inflation, gold is now testing higher prices in the short term.
The World Gold Council (WGC) revealed that central banks are buying over 1,000 tonnes of gold for the third consecutive year in 2024.
