Gold pushed higher on Thursday, with spot prices regaining momentum as weaker US economic data and shifting headlines out of the Middle East kept investors cautious.
The metal traded up towards US$4,788, having earlier tested higher levels as markets reacted to signs of possible diplomatic progress in the region. Initial optimism followed reports of a temporary ceasefire and the prospect of renewed negotiations, before sentiment shifted as traders weighed how fragile the broader situation remains.
That back-and-forth in risk appetite helped shape moves in both the US Dollar and gold. When sentiment improved, the Dollar softened and bullion found support. As uncertainty returned, safe-haven demand also helped underpin prices.
Gold was further supported by softer US economic data. Final fourth-quarter GDP came in at an annualised 0.5%, down from earlier estimates, while weekly jobless claims rose to 219,000, above expectations. Together, these figures added to the view that parts of the US economy may be losing momentum, pressuring the Dollar and providing gold with another tailwind.
Markets are now turning their attention to the latest US Consumer Price Index (CPI) report, due Friday. Inflation is expected to come in at 3.3% year-on-year for March, up from 2.4% in February, a result that could complicate the Federal Reserve’s path from here.
This matters for gold, as inflation and interest rate expectations remain two of the market’s key drivers. A stronger-than-expected CPI print could reinforce the case for rates to stay higher for longer, while any downside surprise may give bullion more room to extend gains.
From a technical perspective, gold continues to hold a constructive near-term setup. Prices remain above key moving average support levels, suggesting buyers are active on dips, although momentum is not yet especially strong.
For now, the broader picture remains unchanged. Gold is being pulled between geopolitical uncertainty, softer economic signals, and the inflation outlook in the United States. With all three factors in play, volatility is likely to remain elevated into the end of the week.
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