U.S. economic data is mixed, and gold prices remain sluggish
U.S. economic data is mixed, prompting traders to take profits ahead of the Federal Reserve's policy meeting, with gold prices maintaining a downward trend. The trading price of gold is close to $2,688 per ounce, due to accelerating wholesale inflation and an increase in unemployment claims. Although gold prices have risen over 30% this year, concerns about economic growth and inflation are expected to slow the pace of gold's increase in 2025. The spot gold price is $2,688.45 per ounce, with a weekly increase potentially reaching 1.8%
According to the Zhitong Finance APP, U.S. economic data is mixed, prompting traders to take profits ahead of the Federal Reserve's last policy meeting of the year, with gold prices maintaining a downward trend. After a 1.4% drop on Thursday, gold trading prices are close to $2,688 per ounce, following a report showing that U.S. wholesale inflation unexpectedly accelerated in November, while the number of people filing for unemployment benefits rose to a two-month high last week.
As optimism grows regarding the Federal Reserve potentially cutting interest rates by 25 basis points next week, gold prices are still expected to see a weekly increase. Traders are turning their attention to the prospect that the Federal Reserve may pause its easing policy in early 2025, as lower borrowing costs typically benefit precious metals.
The World Gold Council stated in a report on Thursday that amid the complex outlook for U.S. interest rates, concerns about economic growth and inflation during Donald Trump's presidency may suppress gold price increases, with the pace of gold rising expected to slow in 2025.
Gold prices have risen over 30% so far this year, on track for the largest annual increase since 1979. The Federal Reserve's easing policies, safe-haven demand, and continued purchases by central banks around the world have supported the rapid rise in gold.
As of the time of writing, the spot gold price is $2,688.45 per ounce, with a weekly increase potentially reaching 1.8%. The Bloomberg Dollar Spot Index remained stable after rising 0.3% in the previous trading session. Silver and platinum prices declined, while palladium prices remained stable