Gold Set for Weekly Loss as US Data Awaited

20 Dec 2024 , 09:48 AM

As the market turned its attention to the U.S. Personal Consumption Expenditure data that was coming later in the day, gold prices were on the verge of a weekly decline on Friday after the Federal Reserve’s decision on its monetary policy-easing cycle indicated a slowing in cuts.

Spot gold has dropped more than 2% this week and was steady at $2,594.59 per ounce. Additionally, U.S. gold futures held flat at $2,609.30.

For more hints about the state of the US economy, investors are now waiting for the core PCE data, the Fed’s favored inflation indicator.

Predictions that the central bank will adopt a cautious approach to policy easing in the upcoming year were strengthened Thursday by data that showed the U.S. economy grew faster than predicted in the third quarter and that unemployment claims also decreased more than expected.

On Thursday, policymakers at the Bank of England voted 6-3 to maintain the current level of interest rates. China, the world’s largest consumer, is predicted by Reuters to keep its benchmark lending rates the same later on Friday.

The allure of the non-yielding gold is diminished by higher rates.

Spot silver remained stable at $29.02 an ounce, while palladium dipped 0.2% to $904.21 and platinum fell 0.4% to $919.70.

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