Gold prices eased marginally during Asian trade on Wednesday. The rally sputtered after traders took some profits after hitting a fresh high of $4,526. That move lined up with surprisingly strong US economic numbers—data out Tuesday showed the economy grew at a 4.3% annual pace last quarter, beating forecasts. For reference, markets expected 3.3%, and the previous quarter hit 3.8%. When the US economy outperforms like this, the dollar gets a lift, making gold pricier for overseas buyers. That’s usually enough to take some of the shine off gold in the short run.
Rate Cut Expectations and Global Risks Offer Support
But it’s not like gold is tumbling off a cliff here. Geopolitical concerns also continue to support the safe-haven, including the US-Venezuela conflict. When the future is uncertain, investors frequently turn to gold, which typically helps keep prices high.
On top of that, the market’s looking ahead to possible rate cuts from the Federal Reserve. With inflation finally easing up and job growth slowing, traders are betting on several cuts in 2026. Lower rates make gold look more attractive since it doesn’t pay interest, and there’s less to lose by holding it.
Focus Turns to Job Data and Market Positioning
For now, trading is pretty quiet—holidays will do that. Everyone’s watching for the latest US jobless claims report, which is to be out later today.They forecast 223,000 new claims, a bit lower than the week before when they hit 224,000.
All in all, gold remains well and truly in a strong uptrend and is trading way above important moving averages. But momentum indicators are showing that the current situation may be approaching too hot, so don’t be surprised if we ping back and forth at the highs or take a breather before grinding to new highs again.
