Gold retreats as robust US data boosts Greenback and Treasury yields
Gold (XAU/USD) edges lower on Thursday, erasing earlier gains after stronger-than-expected US data boosted the Greenback and Treasury yields. At the time of writing, XAU/USD is trading around $3,730, down from session highs near $3,760.
Initial Jobless Claims came in at 218K, beating expectations of 235K and down from 232K the previous week. At the same time, Q2 Gross Domestic Product (GDP) was revised higher to an annualized 3.8% from 3.3%, well above forecasts. Durable Goods Orders also surprised to the upside, surging 2.9% in August, while orders ex-defense climbed 1.9%, pointing to firm business investment.
Meanwhile, the core Personal Consumption Expenditures (PCE) Price Index included in the Q2 GDP report rose to 2.6% from 2.5%, matching expectations.
Recent remarks from Fed officials highlight the delicate balancing act of containing inflation while supporting employment, which explains their guarded approach to easing. Despite this, markets continue to anticipate another interest rate cut in October.
At the same time, persistent geopolitical tensions and a supportive fundamental and technical backdrop are cushioning downside risks in Gold, keeping dip-buyers engaged.
Source: Fxstreet
