Gold prices rise as Fed rate cut forecasts weaken

Gold prices advanced today, April 25, as US bond yields soared following the disappointing data on the US economy.

The US GDP rose 1.6% in the first three months of this year, well below expectations of 2.5% and the revised pace for the fourth quarter of last year of 3.4%.

Consequently, investors reduced their interest rate expectations, as they currently see the Federal Reserve’s first rate cut by a quarter of a percentage point coming in November, instead of September.

Bullion for June delivery climbed by 0.19%, or $4.50, to $2,342.90 an ounce at 03:49 pm Makkah time, with spot prices also up 0.66% to $2,331.46 per ounce.

Likewise, silver futures for July delivery also jumped 0.39% to $27.73 an ounce, while platinum spot prices remained flat at $905.62 per ounce.