Gold Advances in Thin Trade as Investors Mull Fed Rate Outlook
Gold rose in thin US holiday trading as investors digesting mixed domestic jobs data while mulling the outlook for Federal Reserve interest-rate moves.
Recurring applications for US unemployment benefits rose to the highest in more than three years, adding to signs that it’s taking longer for out-of-work people to find a job.
Continuing applications, a proxy for the number of people receiving benefits, rose to 1.91 million in the week ended Dec. 14, according to Labor Department data released Thursday. Initial claims, meanwhile, ticked down to 219,000 in the week ended Dec. 21.
At their last meeting of 2024, Fed policymakers reined in the number of rate cuts expected in 2025 as Chair Jerome Powell made clear that the central bank needs to see more progress of easing inflation. Lower borrowing costs are typically positive for bullion, which doesn’t pay interest.
Still, bullion has surged nearly 28% this year and is on pace for the strongest annual performance since 2010, supported by monetary easing in the US, safe-haven demand and sustained buying by the world’s central banks. The rally has stalled since early November, however, as President-elect Donald Trump’s victory boosted the dollar.
Spot gold rose 0.8% to $2,636.57 an ounce as of 10:46 a.m. in New York. Silver also advanced, while platinum and palladium fell.
Source : Bloomberg
