Gold prices remained above $2,660 per ounce on Thursday, holding onto recent gains as investors evaluated the Fed's policy outlook ahead of key US employment data.
Gold holds above $2,660 amid Fed outlook
The latest FOMC minutes suggested that inflation could slow in 2024, though concerns about persistent price pressures—partly linked to Trump's policies—persisted. The Fed also indicated it might be nearing a decision to slow the pace of rate cuts, which could reduce gold’s appeal. Despite this, gold received support from a weaker-than-expected private sector employment report for December, reinforcing the possibility of a more cautious Fed.
Gold-backed ETFs see first inflows in four years, led by Asia
Additionally, physical gold-backed ETFs led by Asia saw their first inflows in four years. According to the World Gold Council, north American funds experienced their first positive annual inflow since 2020, and European outflows narrowed compared to 2023.
