Gold trimmed some losses on Wednesday and rose 0.1% on Thursday after the US Gross Domestic Product (GDP) report showed a slowing economy and revived hopes of the Federal Reserve (Fed) cutting interest rates.
Meanwhile, the price of gold is now at $2,346.96 which is up by 0.15% since it opened in the Asian trading session this morning.
The yield on the US 10-year Treasury note fell nearly seven basis points to 4.548% and the US dollar (DXY) declined 0.43% to 104.67 points.
The US economy is growing at a slower pace than in the fourth quarter of 2023 as higher borrowing cost sentiment has weighed on the economy for longer.
Additionally, the US Department of Labor revealed an increase in the number of Americans in the unemployment rate report.
Recently, New York Fed President John Williams made headlines after his speech said monetary policy was well-positioned despite stubborn inflation and considered interest rate cuts for now not a necessity.
John predicts that inflation will reach the 2% target in early 2026.
Although he was a hawkish Fed official, the gold market remained largely flat after his speech. However, the US housing market is the weakest.
Later today (Friday), market participants will be presented with the Personal Consumer Expenditure (PCE) Price Index data for April which will be the Fed's impetus for the next inflation.
Market consensus expects core PCE to be at 2.8% annualized and core PCE projected to increase by 0.3% monthly.
