Gold Breaks $5,070 Amid Easing Fed Expectations••••
Gold rose above $5,070 per ounce on Tuesday, approaching a two-week high as fresh U.S. economic data reinforced expectations of a more accommodative Federal Reserve policy. Activity indicators released recently suggest cooling momentum: December retail sales unexpectedly stalled, the GDP control group declined 0.1%, job openings fell to their lowest since 2020, and private payroll growth missed estimates. Collectively, these figures point to moderating demand and reduced inflationary pressures, shifting market expectations toward potential rate easing later this year.
Structural support remains strong from official buyers. China’s central bank extended its gold purchases for the fifteenth consecutive month in January, sustaining steady long-term demand. Geopolitical uncertainty also continues to influence sentiment. While U.S.–Iran talks have shown tentative progress, ongoing tensions keep safe-haven interest elevated, helping to limit downside risk in bullion.
In this environment, gold benefits from a combination of weaker rate expectations, consistent official sector buying, and persistent geopolitical concerns. Investors are watching technical levels around $5,070 for near-term guidance, while fundamentals suggest that the market may continue to find support even amid broader macroeconomic fluctuations.
