Gold prices drop amid mixed US data

Gold prices edged lower following mixed US economic data, with investors turning their attention to the Federal Reserve's final policy meeting of the year next week.

ullion traded near $2,670 an ounce, after falling 1.4% on Thursday after US wholesale inflation unexpectedly accelerated in November. Separately, applications for jobless benefits rose last week to a two-month high, News.Az reports, citing foreign media.

Gold is still set to notch a weekly gain, with optimism increasing that the US central bank will cut rates by 25 basis points at its meeting on Dec. 18. Lower borrowing costs typically aid the metal, as it doesn’t pay interest.

Prices for bullion are expected to rise more slowly in 2025, with growth and inflation concerns under a Donald Trump presidency likely to temper gains amid a complicated outlook for US interest rates, the World Gold Council said in a report on Thursday.

The precious metal, which has surged about 30% so far this year, is heading for its biggest annual gain since 2007. Its breakneck run has been supported by Fed easing, safe-haven demand, and sustained buying by the world’s central banks.

Spot gold was 0.4% lower at $2,670.70 an ounce as of 9:45 a.m. in London, on track for a weekly increase of about 1.5%. The Bloomberg Dollar Spot Index rose 0.1%. Silver and platinum slipped, while palladium was steady.

News.Az