Gold Prices Under Pressure from Resilient US Economy and Cooling Inflation Fears

Resilient US economic data and muted inflation pressures are weighing on gold prices, which continue to hover near $4,000 per ounce. The final Q1 GDP reading showed 2.1% quarter-over-quarter growth, revised up from 1.6% and beating forecasts. Core PCE rose 0.3% month-over-month and 3.4% year-over-year, in line with expectations.

Spot gold last traded at $4,002.90 an ounce. Monte Safieddine of Capital.com said the dollar should stay supported while gold may struggle amid firm real-yield expectations. Vanguard economists forecast 3% US growth this year, driven by the AI sector.

Although consumer spending was revised lower for the quarter, recent personal income and spending both increased 0.7% month-over-month, signaling ongoing consumer resilience despite higher energy costs from Middle East tensions.