(Bloomberg) -- Gold erased gains as traders geared up for US economic data that may help them assess the outlook for interest rates in the year ahead.
Bullion fell 0.3% to $2,654 an ounce, trimming an advance seen on the first trading day of 2025. Investors are closely monitoring rising concerns over near-term volatility in stock markets.
Meanwhile, two deadly attacks in the US this week further compounded market angst, sparking domestic security concerns ahead of Donald Trump’s official return to the White House later this month.
Manufacturing data due later Friday will also be closely watched for clues on the Fed’s monetary easing trajectory. Lower rates are typically positive for bullion, which doesn’t pay interest.
The precious metal gained 27% last year — its strongest rally since 2010 — fueled largely by the Federal Reserve’s rate-cutting cycle, sustained geopolitical risks and a wave of purchases by central banks. The World Gold Council expects prices will rise more slowly in 2025, tempered by variables such as growth and inflation.
The Bloomberg Dollar Spot Index was down 0.1%. Silver, palladium and platinum moved higher.
(A previous version of this story corrected information about prices in second paragraph and upcoming data in fourth paragraph.)
©2025 Bloomberg L.P.