Gold Jumps as Weak U.S. Data Fuels Fed Cut Bets

​Gold prices surged Thursday as softer-than-expected U.S. economic data reignited investor bets that the Federal Reserve will continue cutting interest rates this year. Spot gold climbed 1.5% to $3,224.54 an ounce, supported by falling Treasury yields and a dip in the dollar.

The latest numbers showed producer prices dropped by the most in five years, while retail sales barely budged, stoking fears of a broader slowdown. With inflation pressures easing and economic growth sputtering, traders boosted expectations for more Fed easing—a bullish setup for non-yielding assets like gold.

Gold had recently lost some of its safe-haven shine as trade tensions between the U.S. and China eased, shifting sentiment toward riskier assets. However, Thursday’s data revived interest, especially with swaps traders now doubling down on their rate-cut forecasts.

Despite the bounce, gold remains more than $250 off its all-time high set last month. Analysts warn that if key support levels fail—particularly around the $3,050–$3,150 range—it could fall back toward $2,950. But for now, strong central bank buying, speculative demand from China, and ETF inflows continue to support the metal.

Other precious metals joined the rally: silver, platinum, and palladium all posted gains, while the Bloomberg Dollar Spot Index dipped 0.2%.

Bottom line: With weak economic data and rising hopes of rate cuts, gold’s bullish case just got a boost. It’s a classic market pivot—bad news for the economy, good news for bullion.







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