Gold Climbs Above $4,400 as Soft US Data Dampens Fed Rate Hike Expectations
Gold prices have surpassed $4,400 per ounce as weaker-than-expected US economic data has diminished the likelihood of additional Federal Reserve interest rate hikes.
The latest reports on consumer spending and labor market data have led traders to scale back their bets on further Fed tightening, reducing the opportunity cost of holding gold.
This shift in monetary policy expectations comes as a boost to gold, which has been driven upwards by a mix of geopolitical uncertainty, central bank buying, and dovish monetary policy outlook.
Spot gold was trading around $4,410 per ounce in recent sessions, up nearly 2% over the past week, with increased inflows into gold-backed exchange-traded funds signaling renewed investor confidence in the metal as a hedge against economic uncertainty.