Gold Prices Plummet Amid Strong U.S. Economic Data

On Thursday, gold prices dropped sharply following the release of stronger-than-expected U.S. economic data. This data led to a rise in U.S. Treasury yields and bolstered the U.S. dollar against most currencies. By the end of a volatile trading session, gold had fallen over 2%, breaking several support levels and reaching its lowest point in two weeks.

The robust performance of the U.S. economy and persistent inflationary pressures suggest that the Federal Reserve may continue its restrictive monetary policy for a longer period. This scenario of prolonged higher interest rates could constrain gold's upside potential in the near term, assuming risk aversion remains low.

Gold Market Update and Future Outlook

May 24 2024

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