(Bloomberg) -- Gold prices swung as traders digested US data on retail spending that underscored strength in the world’s largest economy — weighing that with the outlook for the Federal Reserve’s expected interest-rate cuts next month.
A separate US report showed jobless claims dropping to the lowest since early July.
The positive economic data helped to allay fears of a hard landing in the US, but also raised concerns that signs of strength could persuade the Fed to curb the size and frequency of rate cuts.
Lower rates are typically beneficial for the precious metal, which doesn’t pay interest.
Gold has surged 19% this year and hit an all-time high of $2,483.73 an ounce last month. Bullion’s advance has been fueled by increasing optimism on monetary easing, along with purchases by central banks. Gold’s appeal as a haven asset has also been boosted by Middle East tensions and Russia’s war with Ukraine.
Spot gold rose 0.4% to $2,457.81 at 2:38 p.m. in New York. The Bloomberg Dollar Spot Index rose by 0.2%. Silver, platinum and palladium all advanced.
--With assistance from Jacob Lorinc.
©2024 Bloomberg L.P.
