Gold near record highs asinvestors await US data

Today’s markets analysis on behalf of Konstantinos Chrysikos Head of Customer Relationship Management at Kudotrade

Gold prices rose on Thursday after a brief correction and held close to record levels as markets weighed mixed signals from the Federal Reserve and awaited key economic data.

Markets broadly expect two additional 25-basis-point rate cuts this year, but Chair Jerome Powell earlier this week pushed back against aggressive easing. By contrast, San Francisco Fed President Mary Daly reiterated her support for last week’s cut and signalled openness to further reductions.

Investors now turn to Friday’s PCE inflation release, expected at 0.3% month-on-month, for confirmation of the policy outlook, alongside weekly jobless claims and US GDP due later today. Softer data could raise expectations of a dovish stance from the central bank and benefit non-yielding assets like gold.

Political uncertainty also loomed after the White House budget office instructed agencies to prepare for mass layoffs in the event of a government shutdown, escalating tensions with Congress.

Geopolitical risks continued to underpin safe-haven demand. President Trump hardened his rhetoric against Russia, urging NATO members to intercept Russian aircraft entering allied airspace and pledging stronger support for Ukraine. Meanwhile, in the Middle East, there were no signs of de-escalation.

Zaid Barem / ymm