Gold held steady above $5,000 an ounce on Wednesday, supported by new U.S. economic data that fueled expectations for Federal Reserve interest rate cuts.
Prices edged higher after a report showed U.S. retail sales stalled unexpectedly in December. This weakness bolstered the case for the Fed to lower borrowing costs, pushing bond yields down and weakening the dollar—conditions that typically lift non-yielding gold.
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The metal has recovered about half of a steep 13% plunge from late January’s record highs. Analysts note that speculative pressure has eased, potentially setting the stage for a more stable rally. Major banks, including BNP Paribas, forecast further gains, with a year-end target of $6,000 being cited.
Spot gold last traded up 0.4% at $5,044.53 per ounce.
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