2024.03.1510:03:00UTC+00Gold Headed For Weekly Loss On Signs Of Sticky Inflation

Gold edged up slightly on Friday but was on course to snap a three-week winning streak amid signs of sticky inflation and doubts on early Fed rate cuts.

Spot gold edged up 0.3 percent to $2,168.30 while U.S. gold futures were up 0.2 percent at $2,172.30.

Spot gold was on track to post a weekly fall of around half a percent, marking its first weekly decline since mid-February.

The U.S. dollar marched higher and Treasury yields spiked after Thursday's data showed the U.S. producer price inflation rose 0.6 percent in February from last month, outpacing the modest 0.3 percent gain forecasted by economists.

Retail sales numbers for February came in short of estimates while unemployment claims dipped unexpectedly during the preceding week, painting a mixed picture of the world's largest economy.

The Fed is expected to keep rates unchanged at the March 19-20 meeting but the new "dot plot" would be closely watched by investors for additional clues on the rate trajectory.

According to the CME FedWatch Tool, the probability of the Fed leaving the policy rate unchanged at June meeting climbed from 25 percent to 40 percent after the CPI data released earlier this week and Thursday's PPI data.

On the data front, U.S. import and export price indices for February, NY Empire State manufacturing index for March, industrial production figures for February and the University of Michigan consumer sentiment index for March are slated for release in the New York session later today.