Gold maintains its positive bias above the $5,000 per ounce level for the third consecutive day, but upward momentum remains limited amid anticipation of important US economic data releases.
Awaiting US data
Traders prefer to wait for the preliminary reading of fourth-quarter GDP, as well as the Personal Consumption Expenditures (PCE) price index, the Federal Reserve's preferred inflation gauge. This data will be crucial in shaping expectations for the pace of interest rate cuts, which in turn will influence the movements of the US dollar and affect the performance of non-yielding gold.
Geopolitical tensions are supporting gold.
On the political front, US President Donald Trump warned Iran that it must reach an agreement on its nuclear program within 10 to 15 days, threatening severe consequences for non-compliance. For its part, Iran informed UN Secretary-General António Guterres that it does not seek war but will not tolerate any military aggression, asserting that any bases or assets of a hostile power in the region would be legitimate targets if attacked.