Gold lively as US growth cools

Gold prices extended gains on Friday after US Q3 GDP was revised down slightly and soft jobs data pushed the dollar to four-month lows against other major currencies.

Spot gold rose 0.4% to $2,055.60 per ounce. Gold futures rose 0.5% to $2,061.40 per ounce.

The gains come as signs emerge that the US economy is cooling, bolstering expectations that the Federal Reserve will cut interest rates in 2024. Lower rates typically boost non-yielding assets like gold. Markets are now pricing in an 83% chance of a Fed rate cut by March.

The benchmark 10-year Treasury yield also hovered near multi-month lows, further supporting gold by decreasing the opportunity cost of holding bullion. At the same time, the dollar index hit its lowest level since July as investors turned to alternative stores of value like gold.

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Some safe-haven demand has also emerged amid geopolitical tensions in the Red Sea region. All eyes now turn to November US core PCE inflation data due later on Friday, which could provide further clues on the Fed’s rate path and gold’s fortunes.