Gold price retreats to March lows after US data

Gold price has retreated to $1,940.00, during Thursday’s US session after US GDP revised up to 1.3% in the first quarter of 2023, while Jobless Claims come in below expectations.

Core PCE inflation rises by 5% in Q1, the strong US data was dragging gold to its lowest level since March 22. This leads investors to place higher bets on a 25-basis points interest rate hike by the Fed in the upcoming June meeting. Consequently, US bond yields increase, exerting pressure on gold price and favouring the US Dollar.

Gold price, as of the time of writing, is trading at $1,939.82, which is 0.7% below its opening price. Meanwhile, the US Dollar Index (DXY) Index is currently at the 104.22 level, showing a gain of 0.32% today.