Gold prices fell to a two-week low on Thursday after the US Bureau of Economic Analysis reported stronger-than-expected economic performance for the second quarter of 2024. The precious metal experienced a decline of over 1.30%, with XAU/USD trading at $2,364.
Since reaching a peak of $2,483 on July 17, gold has decreased by approximately 5%, reflecting a period of profit-taking. This decline is also influenced by a drop in US Treasury yields, although the US Dollar (USD) has remained robust.
The US economic data showed that Q2 Gross Domestic Product (GDP) exceeded expectations, significantly surpassing first-quarter figures. Additionally, the number of Americans filing for unemployment benefits decreased compared to the week ending July 30. While Durable Goods Orders fell by over 6%, excluding aircraft and transport, they showed signs of recovery from May’s downturn.
Despite these factors, the yield on the US 10-year Treasury note decreased by more than four basis points, ending the day at 4.245%. According to the CME FedWatch Tool, investors are fully anticipating a quarter-point reduction in interest rates by the Federal Reserve at its September meeting.
