Gold prices have stabilized on Friday, after sharp losses a day earlier. In the European session, the metal is trading at a spot price of $1264.03. On the release front, today’s major events are Advance GDP and UoM Consumer Sentiment.
US key numbers were a mix on Thursday. This was underscored by Unemployment Claims, which plunged to 265 thousand, down from 307 thousand a week earlier. This marked the indicator’s lowest level since April 2000. The news was not as positive from Pending Home Sales, which declined 3.7%, its worst reading in a year.
The Federal Reserve reiterated in its policy statement on Wednesday that it would be “patient” regarding the timeline for a raise in interest rates, which have been close to zero since 2008. However, the Fed also noted that the US economy was expanding at a “solid pace” thanks to the robust labor market. This vote of confidence helped the dollar post sharp gains against the euro. The Fed is widely expected to raise rates sometime during the year, so the Fed rate watch is sure to continue as the markets look for clues as to when the Fed will make a move.
XAU/USD 1264.03 H: 1266.18 L: 1257.33
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