Gold held within a tight range during Asian trade on Thursday, with traders focusing on the upcoming U.S. fourth-quarter advance Gross Domestic Product (GDP) report for further market direction.
By 4:10 pm AEDT (5:10 am GMT) spot gold prices were just 0.03% higher at US$2,760.92.
Despite the rebound in gold prices, the metal continues to trade within established levels as traders assess the potential impact of a slowdown in U.S. economic growth. A subdued U.S. dollar and low Treasury bond yields have supported gold's appeal, with the market still digesting the U.S. Federal Reserve's latest policy stance amid ongoing concerns over trade tensions and potential tariffs from President Donald Trump on Canada, Mexico, and China this weekend.
Earlier in the session, gold prices briefly dipped after a hawkish hold from the Federal Reserve, which maintained its policy rate in the 4.25% - 4.50% range.
The Fed's statement removed language suggesting inflation had made significant progress, and Chairman Jerome Powell indicated that no immediate rate adjustments were necessary.
This hawkish tone had initially pushed the U.S. dollar higher, but gold managed a modest recovery late in the day as the dollar's gains faltered and Treasury yields declined.
The expectation of a slowdown in U.S. economic growth has revived gold's safe-haven appeal. Analysts anticipate the U.S. economy will grow at an annualised pace of 2.6% in Q4 2024, down from the 3.1% expansion seen in the previous quarter.
In addition to the GDP data, traders will also be monitoring the weekly U.S. Jobless Claims and the quarterly Personal Consumption Expenditures (PCE) Prices data for further clues on economic conditions.
