Gold Edges Lower as Traders Weigh Mixed US Data and Rate Outlook
(Bloomberg) -- Gold edged lower after mixed US data, with investors focusing on the Federal Reserve’s final policy meeting of the year next week.
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Bullion traded near $2,660 an ounce, after falling 1.4% on Thursday after US wholesale inflation unexpectedly accelerated in November. Separately, applications for jobless benefits rose last week to a two-month high.
Gold is still set to notch a weekly gain, with optimism increasing that the US central bank will cut rates by 25 basis points at its meeting on Dec. 18. Lower borrowing costs typically aid the metal, as it doesn’t pay interest.
The precious metal, which has surged about 29% so far this year, is heading for its biggest annual gain since 2010. Its breakneck run has been supported by Fed easing, safe-haven demand and sustained buying by the world’s central banks.
The World Gold Council expects gold prices will rise more slowly in 2025, tempered by variables like growth and inflation. Possible trade wars in US President-elect Donald Trump’s second term and complicated interest-rate outlooks may spill over into subpar economic growth, hurting demand from investors and consumers, the industry association said in its 2025 outlook report.
Spot gold was 0.8% lower at $2,660.31 an ounce as of 12:08 p.m. in New York, on track for a weekly increase of about 1%. Silver, platinum and palladium all fell.
--With assistance from Jack Ryan and Yvonne Yue Li.
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