Investing.com-- Gold prices fell in Asian trading on Friday as the dollar edged up ahead of a key U.S. inflation report, however, bullion remained on track for modest monthly gains, supported by its safe-haven appeal amid U.S. trade tariff concerns.

Spot Gold fell 0.4% to $2,864.94 per ounce, while Gold Futures expiring in April lost 0.6% higher to $2,877.80 an ounce by 01:44 ET (06:44 GMT).

Gold set for 2% monthly gain, US PCE data awaited

Gold prices remained under pressure on Friday as investors awaited the U.S. Personal Consumption Expenditures (PCE) price index , the Federal Reserve’s preferred inflation gauge, for further clarity on interest rate trends.

The US Dollar Index edged 0.1% higher, making gold more expensive for overseas buyers

Despite this, lingering concerns over global trade tensions have provided some support to bullion as a safe-haven asset.

The yellow metal was set to gain nearly 2% this month.

Investors grew cautious after Trump reiterated plans to impose a 25% tariff on Mexican and Canadian imports, alongside a fresh 10% tariff on Chinese goods.

While gold has seen some safe-haven demand amid trade concerns, the immediate outlook hinges on how the PCE inflation data shapes Fed rate expectations.

“Concerns that tariffs might intensify inflation risks as economic growth slows are boosting demand for safe-haven assets like gold,” ING analysts said in a recent note.

“With tariff concerns likely to linger, gold will continue to benefit from heightened uncertainty,” they added.

Other precious metals fell due to a strong dollar. Platinum Futures slipped 0.4% to $948.55 an ounce, while Silver Futures lost 1% to $31.495 an ounce.

Copper falls on tariff concerns, China stimulus measures eyed

Copper prices retreated further on concerns around Trump’s tariff policies, which weighed on industrial metals.

In early February, the U.S. president announced a 25% tariff on all steel and aluminum imports into the country, set to take effect on March 12.

"Tariffs are bearish for industrial metals as global growth slows. Yet the prospect of a prolonged trade war raises expectations that Beijing may unveil more aggressive stimulus measures, limiting the downside for metal prices," ING analysts wrote.

Benchmark Copper Futures on the London Metal Exchange fell 0.7% to $9,354.40 a ton, while April Copper Futures declined 1% to $4.549 a pound.