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Gold clings to moderate gains on Friday after softer-than-expected US PCE inflation figures. The US Dollar Index has extended its reversal from two-year highs following the release. XAU/USD remains under pressure, limited below $2,605 Gold (XAU/USD) is trading with a moderate positive tone on Friday following the sharp sell-off earlier this week. Cooler-than-expected US Personal Consumption Expenditures (PCE) Price Index data on Friday has increased selling pressure on the US Dollar, although the precious metal is struggling to put a significant distance from the one-month lows hit this week. PCE Inflation has increased 0.1% in November, against expectations of a 0.2% increment. The yearly rate accelerated to 2.4% from the previous month’s 2.3% reading, still below the 2.5% anticipated by the market consensus. Likewise, the Core PCE eased to 0.1% from 0.3% in October while the yearly inflation remained steady at 2,8% against market expectations of an uptick to 2.9%. On Thursday, an upward revision to the third quarter’s US Gross Domestic Product (GDP), and the lower-than-expected Jobless claims have endorsed the Federal Reserve’s (Fed) hawkish stance for 2025. Higher US yields, strong USD keep Gold recovery subdued XAU/USD is trading higher for the second consecutive day but lacks upside momentum, with traders reluctant to sell the US Dollar ahead of a key inflation report to be published at 13:30 GMT. US Treasury yields are steady above the 4.50% mark after having rallied 40 basis points over the last two weeks. This acts as a headwind for Gold as it is a non-interest-paying asset. Data released on Thursday showed that the US economy grew at a 3.1% annualized pace in the third quarter, significantly improving from the already healthy 2.8% advance previously estimated. Likewise, weekly Jobless Claims declined to 220K on the week ending December 13 from the previous week’s 242K…