“Gold Prices Set to React to US PCE and Jobless Claims Data – January 30, 2025”

On January 30, 2025, higher US PCE prices (inflation), lower jobless claims (strong labor market), and weak GDP growth create mixed signals for gold prices. While higher inflation and a weak economy could support gold as a hedge, a strong labor market raises expectations for continued Federal Reserve tightening, leading to downward pressure on gold.

Today’s given signal : https://t.me/calendarsignal/16807

Reasons for Gold’s Decline

1. Higher US PCE Prices (Inflation Pressure)
   • The PCE Price Index rose to 5.5% YoY, above the expected 5.2%, indicating that inflation remains sticky.
   • Persistent inflation reduces the likelihood of aggressive Fed rate cuts, keeping interest rates high, which is negative for gold.
     
     
2. Lower Jobless Claims (Strong Labor Market)
   • Jobless claims dropped to 220K, below the forecast of 250K, reflecting continued economic strength.
   • A robust job market reduces recession fears, shifting investors away from safe-haven assets like gold.
     
     
3. Good US GDP Growth (Economic Strength)
   • Q4 GDP came in at 3.2%, above the expected 2.8%, signaling strong economic expansion.
   • Strong GDP growth boosts stock markets, causing investors to shift away from safe-haven assets like gold.

Pros & Cons of Higher PCE & Lower Jobless Claims on Gold

✅ Pros (Factors That Support Gold)

• Weak GDP growth increases demand for gold as a hedge against economic slowdown.
• High inflation (PCE 5.5%) can push investors toward gold as a store of value.
  

❌ Cons (Factors That Weigh on Gold)

• Strong labor market and GDP growth reduce the need for safe-haven assets.
• High interest rates and strong US dollar make gold less attractive as a non-yielding asset.

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