FX.co ★ Gold Pares Some Gains After Strong GDP

Gold prices moderated slightly to linger near the historic high of $4,470 per ounce on Tuesday, though they stayed notably high as investors weighed robust US growth data against the prospect of more relaxed monetary policy and ongoing geopolitical tensions. In the third quarter of 2025, the US GDP grew by a robust 4.3% on an annualized basis, surpassing predictions. This led to a momentary reassessment of the likelihood of significant easing by the Federal Reserve, yet it did not diminish the overall attractiveness of gold. Financial markets continue to anticipate two quarter-point interest rate cuts in the coming year, as inflation decreases and labor market conditions show signs of softening. The demand for safe-haven assets remained strong, especially after the United States increased pressure on Venezuela over the weekend by seizing two oil tankers and pursuing a third, heightening geopolitical risk premiums across commodity markets. Within this context, gold has increased by approximately 70% this year, poised for its strongest annual growth since 1979, buoyed by continued purchasing by central banks and consistent inflows into exchange-traded funds (ETFs).