Gold fell on Wednesday as solid US economic data reinforced expectations that the Federal Reserve will hold interest rates steady at its upcoming meeting, while also increasing the likelihood that rate cuts may be pushed back for the remainder of the year, reports Reuters.
Spot gold was down 0.6% at $3,306.57 per ounce, as of 9:34 a.m. ET (1334 GMT). US gold futures fell 0.6% to $3,303.40.
"The releases that just came out really look quite supportive for the economy. GDP was an upside surprise. Same with labor market addition. So both indicate that the Fed can continue to wait on cutting rates," said Nitesh Shah, commodities strategist at WisdomTree.
The ADP National Employment report showed U.S. private payrolls rising more than expected in July, though signs of a slowing labor market persisted. Separately, a Commerce Department report showed second?quarter GDP grew 3%, beating forecasts of 2.4% in a Reuters poll.
The U.S. central bank is widely expected to leave rates unchanged later in the day, resisting pressure from U.S. President Donald Trump's repeated calls for cuts.
Elsewhere, spot silver fell 1.5% to $37.61 per ounce, platinum slipped 1.1% to $1,380.25 and palladium was down 0.5% to $1,251.88.
Gold falls on strong US economic data
FE Team | Published: July 30, 2025 21:59:39
Gold falls on strong US economic data
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