Gold surged above $2,700 on Thursday as the USD pared some of its early gains as US economic data showed continued strength from spending and jobs data.
At 9:40 a.m., gold was at $2,711.53, down 0.13% since its opening in early Asian trading on Friday.
US bond yields fell as markets anticipated further policy easing by the Federal Reserve.
The yellow metal extended its gains as market participants braced for the inauguration of President Donald Trump on January 20.
The US Census Bureau revealed that retail sales came in less than expected in December compared to November, which was revised up, indicating consumer strength.
Other data showed that the number of Americans filing for unemployment insurance rose for the first time since December 7, 2024, weighing on the USD.
Meanwhile, Fed Governor Christopher Waller took the spotlight in a dovish tone, stating that the US central bank could cut rates more quickly if disinflationary processes develop.
For now, the US economy is lacking in indicators and the market will be watching housing data, especially Building Permits and Housing Starts.
