Gold trends lower ahead of US data

Gold prices continued their correction in a cautious trading environment as market focus shifted towards imminent US economic data releases.

The anticipation surrounding Thursday’s US GDP report and Friday’s personal consumption expenditure index has redirected attention from geopolitical concerns to domestic economic indicators.

The economic reports could affect monetary policy expectations while interest rate cut start forecasts continue to change. A less aggressive rate reduction strategy by the Fed could affect gold’s performance.

Bond yields remained near this year’s high and could continue to weigh on gold.

Comments from Federal Reserve officials indicating a potential for maintaining high interest rates for a longer period reinforce expectations that the US central bank might not ease monetary policy as previously expected, undermining the appeal of non-yielding assets like gold.