Gold gives away previous gains following upbeat US GDP and Claims numbers
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Gold retreats further with the US Dollar supported by solid US data. US GDP and Jobless claims endorse the Fed’s rhetoric of US economic exceptionalism. XAU/USD maintains its bearish bias intact, with upside attempts capped at a previous support area Gold (XAU/USD) recovery has been short-lived. The pair failed to overcome the previous support area at $2,625, and extended its pullback on Thursday’s early US session,. US Gross Domestic Product (GDP) and Jobless Claims figures have confirmed the robust economic picture portrayed by the Federal Reserve (Fed) on Wednesday, providing additional support to the Greenback. On Wednesday the Fed cut rates as expected but raised its growth and inflation expectations and scaled down the interest rate cut projections for next year. This, coupled with an unusually hawkish tone from Fed Chairman Jerome Powell, triggered a risk-averse reaction, sending the US Dollar Index (DXY), which tracks the USD value against six major currencies, to test two-year highs and crushing Gold and equities. Higher US yields and a strong USD are likely to limit Gold’s recovery Data released on Wednesday revealed that the US economy grew at a 3.1% annualized pace in the third quarter, a significant improvement from the already healthy, 2.8% advance previously estimated. Likewise, Weekly Jobless Claims declined to 220K on the week of November 13, from the previous week’s 242K beating expectations of a slower decline to 230K On Wednesday, the Federal Reserve cut rates by 25 basis points (bps) to the 4.25%-4.50% range as expected. However, policymakers slashed their easing projections to just two rate cuts in 2025 from the four cuts estimated in September. Next year’s Personal Consumption Expenditures (PCE) inflation expectations were increased to 2.5% from 2.1% in September. Chairman Powell suggested that some officials considered the impact of Trump’s policy expectations on their inflation projections. US economic…