METAL Gold rose as Treasury yields fell following US GDP data
Gold edged higher on Thursday as Treasury yields eased after US GDP data highlighted a softening in the pace of inflation, while focus turned to PCE data for further hints on taper strategy Federal Reserve interest rates.
Benchmark 10-year Treasury yields fell after GDP data.
The US economy grew faster than expected in the fourth quarter thanks to strong consumer spending, with full-year growth reaching 2.5%.
“The economy is much hotter than expected, but at the same time, we have a situation where inflation is falling, so we are not should prepare for a sudden increase in interest rates." at TD Securities, said, adding that that is helping gold.
Lower interest rates reduce the opportunity cost of holding bullion.
According to CME FedWatch Tool, the market expects the Fed to leave interest rates unchanged at its policy meeting on January 30-31 and is expected to cut interest rates by 89% in May.
Gold also received some support from a separate report showing initial claims for state unemployment benefits in the United States rose 25,000 to a seasonally adjusted 214,000 in the week ended January 20 .Economists had forecast 200,000 claims in the latest week.
Benchmark 10-year Treasury yields fell after GDP data.
The US economy grew faster than expected in the fourth quarter thanks to strong consumer spending, with full-year growth reaching 2.5%.
“The economy is much hotter than expected, but at the same time, we have a situation where inflation is falling, so we are not should prepare for a sudden increase in interest rates." at TD Securities, said, adding that that is helping gold.
Lower interest rates reduce the opportunity cost of holding bullion.
According to CME FedWatch Tool, the market expects the Fed to leave interest rates unchanged at its policy meeting on January 30-31 and is expected to cut interest rates by 89% in May.
Gold also received some support from a separate report showing initial claims for state unemployment benefits in the United States rose 25,000 to a seasonally adjusted 214,000 in the week ended January 20 .Economists had forecast 200,000 claims in the latest week.
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