Gold Prices Surpass $2,700 As Fed’s Waller Turns Dovish
Gold prices surged above the $2,700 mark on Thursday as the greenback pared some of its earlier gains. Data from the United States (US) revealed that the economy remains solid following the release of consumer spending and jobs data. US bond yields fell as traders expect further easing by the Federal Reserve (Fed). At the time of writing, XAU/USD was trading at $2,715, up 0.72%.
Bullion extended its gains as market participants prepared for the inauguration of US President-elect Donald Trump. The US Census Bureau revealed that Retail Sales missed estimates in December. However, November’s data was revised up, indicating consumer strength.
Other data showed that the number of Americans filing for unemployment insurance jumped for the first time since December 7, 2024, weighing on the greenback.
The US Dollar Index (DXY), which tracks the USD against a basket of six major currencies, fell 0.14%, dropping below the 109.00 mark.
Fed Governor Christopher Waller delivered a dovish statement, stating that the US central bank could lower borrowing costs faster and faster if the desinflation process develops.
The US economic docket will remain light for the rest of the day and traders will be looking to housing data, particularly Building Permits and Housing Starts.
Source: FXStreet
