WASHINGTON (dpa-AFX) - Gold futures settled higher on Thursday as the dollar pared early gains and bond yields dropped, after the latest batch of economic data from the U.S. raised expectations the Federal Reserve will cut interest rates this year.
The dollar index, which stayed firm during the Asian and European sessions, pared gains after the release of U.S. GDP and jobless claims data. The index, which rose to 105.18 in the European session, dropped to 104.63, netting just a small gain.
Gold futures for June ended higher by $1.70 at $2,342.90 an ounce.
Silver futures for June settled lower by $0.831 or about 2.6% at $31.388 an ounce, while Copper futures dropped to $4.6600 per pound, down $0.1310 or about 2.7%.
Revised data released by the Commerce Department on Thursday showed U.S. economic growth slowed by more than previously estimated in the first quarter of 2024. The report said gross domestic product climbed by 1.3% in the first quarter compared to the previously reported 1.6% jump.
First-time claims for U.S. unemployment benefits crept modestly higher in the week ended May 25th, rising to 219,000, an increase of 3,000 from the previous week's revised level of 216,000, data from the Labor Department showed. Economists had expected jobless claims to inch up to 218,000 from the 215,000 originally reported for the previous week.
The Federal Reserve's preferred inflation measure will be released on Friday and price increases as measured by the personal consumption expenditures index are expected to be on par with March figures.
The inflation data could have a significant impact on the outlook for interest rates ahead of the Fed's next monetary policy meeting on June 11-12.
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