Gold prices held steady on Friday and were set for a seventh consecutive weekly gain, driven by concerns over a potential global trade war following U.S. President Donald Trump's call for reciprocal tariffs on countries taxing U.S. imports.

FUNDAMENTALS:

• Spot gold remained firm at $2,929.02 per ounce as of 0040 GMT, nearing its record peak of $2,942.70 reached on Tuesday.

• U.S. gold futures increased by 0.4% to $2,957.50 per ounce.

• President Trump instructed his economic team to draft plans for reciprocal tariffs on countries taxing U.S. imports, with targets including China, Japan, South Korea, and the European Union.

• In the prior session, the U.S. producer price index (PPI) showed a strong increase in January, following an inflation report revealing the fastest rise in consumer prices in nearly 18 months.

• The PPI data reinforced expectations that the Federal Reserve would delay interest rate cuts until the second half of the year.

• Fed Chair Jerome Powell, in his second congressional hearing of the week, emphasized that the central bank was in no hurry to lower interest rates.

• Despite gold's reputation as a hedge against inflation, rising interest rates diminish its appeal as a non-yielding asset.

• Record-high global gold prices have suppressed jewellery demand during India's wedding season, while Chinese dealers have resorted to discounts to attract buyers.

OTHER METALS:

• Spot silver fell 0.1% to $32.32 per ounce.

• Platinum rose 0.1% to $996.35 per ounce.

• Palladium eased 0.3% to $991.26 per ounce.

UPCOMING DATA/EVENTS (GMT):

• 1000: EU GDP Flash Estimate QQ, GDP Flash Estimate YY Q4

• 1100: EU Reserve Assets Total Jan

• 1330: US Import Prices YY, Retail Sales MM Jan

• 1415: US Industrial Production MM Jan