Gold prices stabilized in Asian trade after dropping below the psychologically important $5,000/oz level, as uncertainty over US interest rate cuts continued to pressure precious metals. Investors remain cautious after the metal lost more than 3% in the previous session, with silver also steadying after wiping out approximately 10% of its value.

The Federal Reserve's policy path dominates market sentiment, particularly after President Trump nominated Kevin Warsh as Fed Chairman. Warsh's less dovish stance, combined with stronger-than-expected January jobs data, has reduced expectations for rate cuts this year. The dollar has strengthened from weekly lows following Wednesday's economic releases.

With gold now facing a third consecutive weekly decline, all eyes turn to upcoming US consumer price index inflation data scheduled for release later Friday. The reading could provide crucial direction for the Federal Reserve's monetary policy approach, as both labor market strength and inflation remain the Fed's primary considerations for interest rate decisions.