Gold prices were subdued on Thursday as U.S. Treasury yields rose and the dollar firmed up ahead of U.S. GDP and jobless claims data due later in the day.
Spot gold dipped 0.4 percent to $1,774.34 per ounce, while U.S. gold futures were marginally lower at $1,772.95.
Fed Chair Jerome Powell’s dovish comments on Wednesday were largely anticipated, with investors fearing that strong U.S. economic data would force the force the Fed to taper its debt purchases sooner than expected.
U.S. Treasury yields advanced 1.8 basis points to 1.6486 and the dollar came off nine-week lows as attention shifts to the preliminary reading on first quarter GDP as well as reports on weekly jobless claims and pending home sales due later in the day.
As America emerges from the worst of the pandemic, fueled by massive government aid to households and businesses, economists predict that the world’s largest economy grew at an annualized rate of 6.1 percent in the first three months of the year – faster the than the 4.3 percent recorded at the end of 2020.