(Bloomberg) – Gold (GC=F) wiped out gains as traders braced for US economic data that could help them assess the outlook for interest rates in the coming year.
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Bullion fell 0.1% to $2,654 an ounce, wiping out first trading day forwards of 2025. Investors are closely monitoring growing concerns about near-term volatility in stock markets.
Meanwhile, two deadly attacks in the United States this week further fueled market anger, fueling domestic security concerns ahead of Donald Trump's official return to the White House later this month.
Economic data due later on Friday – including US jobless claims and manufacturing reports – will be closely watched for clues on the Fed's monetary easing trajectory. Lower rates are usually positive for bullion, which does not pay interest.
The precious metal gained 27% last year – its strongest rally since 2010 – driven largely by the Federal Reserve's rate-cutting cycle, ongoing geopolitical risks and a wave of purchases by central banks. The World Gold Council expects prices to rise more slowly in 2025, tempered by variables such as growth and inflation.
The Bloomberg Dollar Spot Index was down 0.1%. Money (SI=F), palladium (AU=F) and platinum (PL=F) edge up.
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