Gold Bounces on Weak US Data as Rate Cut Expectations Rise

Gold prices bounced back on Thursday after a series of disappointing US economic data releases reignited expectations for a more accommodative Federal Reserve policy. The precious metal found support as the US Dollar weakened, making gold cheaper for international buyers.

The key catalyst for the move was weaker-than-expected reports on durable goods orders, consumer confidence, and initial jobless claims, which all missed market forecasts. This data prompted traders to adjust their expectations for the Federal Reserve's next policy moves, with a growing number now pricing in a higher probability of a rate cut in the coming months.

The lower interest rates reduce the opportunity cost of holding non-yielding assets like gold, making it more attractive to investors. The US Dollar Index fell in response to the data, further supporting gold prices. From a technical perspective, the bounce occurred after XAU/USD tested a key support zone around the $2,300 level.