Gold holds around $2070 amid quiet trading session

Gold price remains steady at $2069.50 per ounce, despite a rebound in the US Dollar and higher US Treasury bond yields.

On the data front; Initial Jobless Claims increased to 218,000, above the forecast of 210,000, and Continuing Claims reached 1.875 million, the highest in four weeks. The downside of gold may be limited due to the anticipation of a Fed rate cut in March 2024.

The dollar recovers from its lowest level since July, reaching 101.20. Treasury yields edge higher, with the 10-year yield at 3.85%. The core PCE Price Index, the Federal Reserve’s preferred inflation gauge, cooled to a 3.2% annual rise in November.

The US economy has grown at the fastest rate of any major economy, and jobless rates are almost at all-time lows. Investors anticipate that the Federal Reserve will decrease interest rates as early as March of next year, having completed its cycle of rate hikes. The Chicago Purchasing Managers’ Index for December is the main focus for gold dealers, yet it might not cause much movement as traders head into the holiday season in 2024.