Gold Drops as Traders Weigh Mixed US Data
Gold fell after mixed US data prompted traders to book profits ahead of the Federal Reserve’s final policy meeting of the year.
Bullion was trading near $2,680 an ounce after falling 1.4% on Thursday following a report showing U.S. wholesale inflation unexpectedly rose in November, while applications for unemployment benefits rose last week to a two-month high.
Gold is set to post a weekly gain, with growing optimism that the U.S. central bank will cut interest rates by 25 basis points next week. Traders are shifting focus to the prospect that the Fed could stop easing policy as early as 2025. Lower borrowing costs typically help the precious metal, as it does not pay interest.
Prices will rise more slowly in 2025 as concerns about growth and inflation under Donald Trump are likely to dampen gains amid a complicated U.S. interest rate outlook, the World Gold Council said in a report on Thursday. Read More: WGC Says Gold’s Boom Likely to Slow in 2025
The precious metal is up more than 30% this year, putting it on track for its biggest annual gain since 1979. The boom has been supported by Fed policy easing, safe-haven demand and continued buying by global central banks.
Spot gold was steady at $2,681.65 an ounce at 8:40 a.m. in Singapore, on track for a weekly gain of 1.8%. The Bloomberg Dollar Spot Index was steady, after rising 0.3% in the previous session. Silver and platinum fell, while palladium was steady.
Source: Bloomberg
