Gold declines as traders await key US economic data

(Bloomberg) — Gold (GC = f) erased gains as traders braced for US economic data that may help them evaluate interest rate expectations next year.

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Gold fell 0.1% to $2,654 an ounce, erasing the advance it made on the first trading day in 2025. Investors are closely monitoring growing concerns about volatility in stock markets in the near term.

Meanwhile, two deadly attacks in the United States this week have exacerbated market anxiety, raising domestic security concerns ahead of Donald Trump’s formal return to the White House later this month.

Economic data due later Friday – including US unemployment claims and manufacturing reports – will be closely watched for clues about the Fed’s easing path. Low rates are usually positive for bullion, which does not pay interest.

The precious metal rose 27% last year — its strongest rise since 2010 — driven largely by a cycle of interest rate cuts by the Federal Reserve, persistent geopolitical risks and a wave of buying by central banks. The World Gold Council expects prices to rise more slowly in 2025, affected by variables such as growth and inflation.

The Bloomberg Dollar Index fell 0.1%. silver (C=F), palladium (pa=f) and platinum (PL=W) rose.

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