02:00 PM EST, 01/31/2025 (MT Newswires) -- (Updates prices.)

Gold edged down from a record high early on Friday as the dollar rose after a key U.S. inflation measure steadied last month.

Gold for April delivery was last seen down US$10.30 to US$2,834.90 per ounce, falling off Thursday's record close.

The price of the metal has been supported by safe haven buying as the Trump Administration's economic policies add a chaotic note to global markets. Trump on Thursday pledged to impose 25% tariffs on imports from Mexico and Canada, the two largest U.S. trading partners, beginning on Saturday. He is also threatening other countries with levies, raising fears of retaliation and a global trade war.

"Gold reached a new record high ... as investors seek safety amid a turbulent stock market week and potential global trade war threats from Trump's tariff announcements, which could fuel inflation and slow growth," Saxo Bank noted.

The US Bureau of Economic Analysis reported the Personal Consumption Expenditures (PCE) Index, the Federal Reserve's preferred inflation measure, rose at a 2.6% annualized pace last month, up from 2.4% in November, but matching the consensus forecast according to FactSet. However core PCE, excluding volatile food and energy, rose 2.8%, unchanged from the prior month and also matching estimates.

The dollar moved higher following the data, with the ICE dollar index last seen up 0.66 points to 108.46.

Treasury yields rose, with the yield on the U.S. two-year note last seen up 1.2 basis points to 4.228%, while the 10-year note was paying 4.538%, up 1.9 points.