Gold Down as Traders Await Key US Economic Data
Gold fell slightly as traders braced for US economic data that could help them assess the outlook for interest rates in the coming year.
Bullion fell 0.1% to $2,654 an ounce, erasing gains on the first trading day of 2025. Investors were closely watching growing concerns about near-term volatility in the stock market.
Meanwhile, two deadly attacks in the US this week have added to market anxiety, fueling homeland security concerns ahead of Donald Trump’s formal return to the White House later this month.
Economic data due later Friday — including US jobless claims and a manufacturing report — will be closely watched for clues on the Fed’s monetary easing trajectory. Lower interest rates are typically positive for bullion, which pays no interest.
The precious metal rose 27% last year — its strongest rally since 2010 — driven largely by the Federal Reserve’s rate-cutting cycle, ongoing geopolitical risks and a wave of central bank buying. The World Gold Council expects prices to rise more slowly in 2025, influenced by variables such as growth and inflation.
Source: Bloomberg
