FX.co ★ Gold Eases After Strong GDP

Gold prices dipped below $4,820 per ounce on Thursday as the market settled just under recent record highs. This movement follows a period of volatility where investors balanced strong US economic data against ongoing geopolitical uncertainties. Revised reports indicate the US economy expanded more robustly than previously thought, which highlights its resilience despite a slight slowdown. This scenario has sustained elevated real yields, thereby reducing the appeal of non-yielding assets like gold, and making investors cautious. Nevertheless, gold continues to find support amid persistent uncertainties. President Donald Trump's decision to rescind proposed tariffs on Europe relating to Greenland and his rejection of military intervention offer some reprieve, but tensions linger, especially with Denmark's refusal to negotiate and the European lawmakers’ delay in approving the EU-US trade agreement. Furthermore, the gold market is influenced by concerns spillover after a significant decline in Japanese government bonds.