"Gold prices rose on Thursday after a brief correction and held close to record levels as markets weighed mixed signals from the Federal Reserve and awaited key economic data. Markets broadly expect two additional 25-basis-point rate cuts this year, but Chair Jerome Powell earlier this week pushed back against aggressive easing. By contrast, San Francisco Fed President Mary Daly reiterated her support for last week's cut and signalled openness to further reductions."
"Investors now turn to Friday's PCE inflation release, expected at 0.3% month-on-month, for confirmation of the policy outlook, alongside weekly jobless claims and US GDP due later today. Softer data could raise expectations of a dovish stance from the central bank and benefit non-yielding assets like gold. Political uncertainty also loomed after the White House budget office instructed agencies to prepare for mass layoffs in the event of a government shutdown, escalating tensions with Congress."
Gold prices rose after a brief correction and remained close to record levels as markets absorbed mixed Federal Reserve signals and awaited key economic releases. Markets broadly expect two additional 25-basis-point rate cuts this year, while Chair Jerome Powell pushed back against aggressive easing and San Francisco Fed President Mary Daly signalled openness to further reductions. Investors awaited Friday's PCE inflation report, weekly jobless claims, and US GDP for confirmation of the policy outlook. Softer data could increase expectations of a dovish Fed and boost demand for non-yielding assets like gold. Political uncertainty over potential government shutdown layoffs and ongoing geopolitical tensions supported safe-haven flows.
Read at London Business News | Londonlovesbusiness.com
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