Gold prices rise amid short-covering as traders await US economic data
Date
12/24/2024 8:24:32 AM
(MENAFN) Gold prices surged more than 1 percent on Thursday, bouncing back from a one-month low earlier in the session, as short-covering drove the recovery. Investors are now awaiting key US economic data to provide clearer direction on the Federal Reserve's monetary policy trajectory.
As of 0251 GMT, spot gold had gained 0.8 percent, reaching USD2,607.88 per ounce, while US gold futures saw a 1.2 percent decline, falling to USD2,620.60.
Kelvin Wong, senior market analyst for Asia Pacific at OANDA, explained that short-term speculators took advantage of the dip, driving the gold price higher following its decline to the psychological level of USD2,600.
Wong added that while the upcoming US Personal Consumption Expenditures (PCE) data is expected to align with forecasts, any increase above 3 percent could put downward pressure on gold prices.
Traders are closely monitoring several key economic reports, including US GDP data, initial jobless claims, and core PCE figures later this week, as these will provide further insights into the Federal Reserve's rate cut plans for 2025.
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