Gold futures closed notably higher on Thursday, gaining for the third consecutive session, as the dollar and bond yields drifted lower following weak retail sales data.
The dollar index dropped to 108.83 a little past noon, after having climbed to 109.38 earlier. The index was last seen hovering around 108.95, down 0.13% from previous close.
The dollar eased after several Fed officials said they are confident that inflation is on its way to a 2% annual rate.
Gold futures for January closed up $33.90 or about 1.25% at $2,746.40 an ounce.
Silver futures for January settled at $31.523 an ounce, gaining $0.204 or 0.65%, while Copper futures for January climbed to $4.4090, gaining $0.0495 or 1.14%.
The annual rate of core consumer price growth unexpectedly slowed to 3.2% in December from 3.3% in November, raising expectations that the Federal Reserve could ease rates further.
FOMC voting members Austan Goolsbee, president of the Chicago Fed and John Williams of the New York Fed, as well as non-voter Thomas Barkin of the Richmond Fed, said in separate speeches that they were confident inflation is coming down, though not very quickly.
Data from the Commerce Department showed retail sales in the U.S. increased by less than expected in the month of December. The report said retail sales rose by 0.4% in December after advancing by an upwardly revised 0.8% in November. Economists had expected retail sales to climb by 0.6%.
A report released by the Labor Department showed first-time claims for U.S. unemployment benefits rebounded by more than expected in the week ended January 11th, climbing to 217,000, an increase of 14,000 from the previous week’s revised level of 203,000. Economists had expected jobless claims to rise to 210,000.
Market Analysis
Gold Futures Settle Notably Higher As Dollar Drifts Lower
2025-01-16 19:54:23
