Gold looking for higher highs beyond $2,800
Spot Gold reached a fresh all-time high following the second round of first-tier events, trading as high as $2,798.53 after Wall Street’s opening. The US Dollar (USD) came under selling pressure after the release of tepid growth-related figures.
According to the United States (US) Bureau of Economic Analysis (BEA), the economy grew at an annualized rate of 2.3% in the fourth quarter of 2024, declining from the 3.1% posted in Q3 and missing expectations of 2.6%. The Gross Domestic Product (GDP) report also showed that the GDP Price Index rose by 2.2%, below the expected 2.5%.
Additionally, the core Personal Consumption Expenditures (PCE) Price Index increased by 2.5% on a quarterly basis, matching the market consensus. Finally, the US reported that Initial Jobless Claims for the week ended January 24 improved to 207K from the previous 223K.
Wall Street struggled to digest the news after the Federal Reserve (Fed) kept interest rates on hold on Wednesday and failed to provide fresh clues on the monetary policy direction. Still, and after the dust settled, US indexes trimmed most of their early losses, and the Dow Jones Industrial Average (DJIA) posts modest gains, while the Nasdaq Composite and the S&P 500 trade a handful of points below their Wednesday’s close.
On Friday, the focus will be on Germany, as the country will release December Retail Sales and the preliminary estimate of the January Harmonized Index of Consumer Prices (HICP). The US will publish the December PCE Price Index, yet following the GDP release, the report will not be a surprise; hence, the market will post a limited reaction to the news.(Cay)
Source: fxstreet
