Gold Hikes as Yields Drop

Gold edged higher on Thursday as Treasury yields fell after U.S. GDP data highlighted that pace of inflation fell, while focus shifted to PCE data for further hints on the Federal Reserve’s interest rate cut strategy.

Spot gold rose 0.32% to $2,019.124 per ounce. U.S. gold futures settled 0.1% higher at $2,017.80.

Benchmark 10-year Treasury yields slipped after the GDP data.

The U.S. economy grew faster than expected in the fourth quarter amid strong consumer spending, with growth for the full year coming in at 2.5%.

Gold also got some support from a separate report that showed initial claims for state unemployment benefits in the United States increased 25,000 to a seasonally adjusted 214,000 for the week ended Jan. 20. Economists had forecast 200,000 claims in the latest week.

Spot silver rose 0.42% to $22.7541 U.S. per ounce, while platinum dipped 1.18% to $888.301 U.S. and palladium fell 2.76% to $936.119 U.S.

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