(Bloomberg) — Gold (GC=F) erased gains as traders prepared for U.S. economic data that could help them assess the outlook for interest rates in the coming year.
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Bullion fell 0.1% to $2,654 an ounce, erasing gains from the first trading day of 2025. Investors are closely watching growing concerns about short-term volatility in stock markets.
Meanwhile, two deadly attacks in the US this week have further heightened market fears, raising homeland security concerns ahead of Donald Trump’s official return to the White House later this month.
Economic data due later Friday – including US jobless claims and manufacturing reports – will be closely watched for clues about the Fed’s monetary easing path. Lower rates are generally positive for precious metals, which do not pay interest.
The metal gained 27% last year – its strongest rally since 2010 – fueled largely by the Federal Reserve’s rate-cutting cycle, persistent geopolitical risks and a wave of central bank buying. The World Gold Council expects prices to rise more slowly in 2025, tempered by variables such as growth and inflation.
The Bloomberg Dollar Spot Index fell 0.1%. Silver (SI=F), palladium (PA=F) and platinum (PL=F) with edges upwards.
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