Gold Trust Near $4,400 on Fed Rate-Cut Odds After 1.6% GDP, 3.3% PCE
AAAU•Gold prices remained volatile around $4,400/oz as U.S. Q1 GDP growth slowed to 1.6% while core PCE inflation held at 3.3%, creating potential Fed rate-cut expectations. Durable goods orders jumped 7.9% in April, but rising jobless claims to 215k and U.S.-Iran tensions pushed gold off session lows.
1. Macroeconomic Indicators
Efforts to slow inflation and support growth shaped market sentiment in Q1, with U.S. GDP expanding just 1.6% and core PCE holding at 3.3%. These figures have elevated expectations for rate cuts by the Federal Reserve before year-end, influencing gold valuations.
2. Gold Price Movements
Gold prices oscillated around $4,400 per ounce, recovering from session intraday lows. The temporary bounce reflected mixed demand drivers as traders assessed shifting interest rate outlooks.
3. Durable Goods and Labor Data
U.S. durable goods orders surged 7.9% in April, signaling stronger economic activity. Conversely, first-time jobless claims rose to 215,000, highlighting labor market fragility and adding complexity to gold’s inflation-hedge narrative.
4. Geopolitical Tensions
Escalating U.S.-Iran strikes raised oil price inflation concerns, bolstering the greenback and pressuring gold. Geopolitical risk remains a key factor for portfolio diversification into precious metals.
