Gold price slips below $3,300 amid weak US data, set for over 5% monthly gains
Gold fell some 0.69% during the North American session on Wednesday after hitting a daily high of $3,328. Data from the United States (US) revealed an economic contraction and fueled speculation for further interest rate cuts by the Federal Reserve (Fed). At the time of writing, XAU/USD trades at $3,293, near the current week's lows.
The largest economy in the world is facing an ongoing economic slowdown, as revealed by the US Department of Commerce. Gross Domestic Product (GDP) figures for the first quarter of 2025 disappointed investors, exerting pressure on the Federal Reserve, which is fighting to bring inflation back towards its 2% goal.
After the data release, investors rushed to price in 100 basis points of rate cuts by the Fed, meaning that the fed funds rate will end near 3.45%, as revealed by data from Prime Market Terminal.
Bullion traders were also attentive to the March release of the Fed’s preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index. The figures dipped as expected by analysts, though they remain above the US central bank's 2% goal.
Labor market data was soft, as revealed by ADP in its National Employment Change report in April.
Despite posting daily losses, Bullion prices are set to end April with gains of over 5.49%.
Ahead in the week, traders are eyeing the release of the ISM Manufacturing PMI for April and Nonfarm Payroll figures for the same period.
Source: Fxstreet
