Gold fell below $2,630 per ounce on Thursday, trimming recent gains as investors continued to assess the latest batch of US economic data.
Gold falls below $2,630
Both PCE and core PCE prices showed that inflation progress had stalled, reinforcing the Federal Reserve's cautious stance on further rate cuts. Additional data suggested that the economy remains strong, following the release of the second estimate for third-quarter GDP, while employment data indicated continued resilience in the labor market, with the number of Americans filing for unemployment benefits falling below expectations.
Eyes on geopolitical tensions and Fed's moves
This data further limited the Fed's room to lower rates next year. On the geopolitical front, traders continued to monitor developments in the Middle East. While the recent ceasefire deal between Israel and Hezbollah eased some of the metal’s safety appeal, uncertainty persists following strong comments from Israeli Prime Minister Netanyahu.
