Gold Pulls Back From Record High
Gold eased toward the $2,750 per ounce mark on Thursday after having tested the record-high of $2,790 earlier in the session, as markets continued to gauge demand for safety and protection from the pro-inflationary developments if the US economy against pressure from a less-dovish Federal Reserve.
New data indicated strong personal income and spending aggregates, inflation gauges that remained stubbornly above target, and a sharp reduction in low jobless claims. The figures extended the view that the US economy is resilient to higher borrowing costs and added leeway for the Fed to hold off in delivering aggressive cuts. Despite being softened by a less-dovish Fed, political uncertainty in the US continued to support bullion. T
he possibility of another Trump presidency raised expectations of expansionary fiscal policy and higher import tariffs. Consequently, investors continued to hold gold as a shield against inflationary risks in the long term.
Source: Trading Economics
