FX.co ★ Gold Mixed As Yields Rebound

Gold prices traded mixed on Thursday amid recovery in U.S. Treasury yields.

The downside remained capped due to expectations that the Federal Reserve may unwind its restrictive policy sooner rather than later.

Spot gold was marginally higher at $2,078.01 per ounce, while U.S. gold futures were down 0.2 percent at $2,088.10.

Gold prices hit a three-week high on Thursday, buoyed by the decline in the dollar index and bond yields.

Investors are currently pricing in the first 25 bps rate cut in March, followed by two more 25 bps cuts in May and June due to slowing inflation.

Overall, markets eye 5 cuts in 2024 and 3 more cuts in 2025 so that rates reach 3.00-3.25 percent in 2025Q3.

U.S. reports on weekly jobless claims and pending home sales may attract some attention later in the day, though trading activity is likely to remain subdued ahead of the New Year's weekend.