Gold climbed above $2,610 per ounce on Thursday, likely rebounding on technical grounds after dropping over 2% in the prior session.
Gold rises on likely technical recovery
The earlier decline was prompted by the Federal Reserve’s hawkish stance, signaling fewer rate cuts next year. The latest dot plot projections indicated only two rate cuts in 2025, underpinned by robust GDP growth and persistent inflation. This outlook has weighed on gold demand, as limited monetary easing diminishes the appeal of non-yielding assets like bullion.
Attention turns to US data
Traders are now turning their attention to upcoming U.S. GDP and PCE inflation data, which could further influence monetary policy expectations. Gold has soared more than 27% this year, on track for its largest annual increase since 2010, fueled by U.S. monetary easing, strong safe-haven demand, and significant central bank purchases.
