Gold Slips as Strong U.S. Economic Data Dims Rate Cut Hopes

Credit: Reuters

Gold prices retreated from a recent peak as strong jobless claims data suggested a robust economy, while investors awaited further economic indicators to gauge the Federal Reserve's interest rate outlook.

Spot gold dipped 0.1% to $2,022.74 an ounce after reaching its highest level since February 9. U.S. gold futures also closed 0.2% lower at $2,030.7.

Rising U.S. Treasury yields made gold relatively more expensive for other currency holders. Analysts warn of potential downside risks for gold in the short term if positive economic data continues and inflation remains stable.