Gold slips as traders eye US data and Nvidia earnings
|Gold prices fell in early Wednesday trading, giving back some of the previous session’s gains. The losses were driven by profit-taking after bullion hit a two-week high on Tuesday, as well as by a modest rebound in the US dollar. However, downside pressure on gold appears limited by the US administration’s attempt to dismiss Federal Reserve governor Lisa Cook — a move many view as political interference that could undermine the central bank’s independence and weaken the dollar’s appeal. This dynamic is supportive for gold, given its inverse correlation with the US currency. Against this backdrop, traders will closely monitor developments in Washington while awaiting key US economic data — Thursday’s GDP figures and Friday’s PCE inflation release. Both are important events in the economic calendar that could influence investor sentiment and Fed rate-cut expectations, with potential implications for gold’s performance. Another focal point will be Nvidia’s earnings, due late on Wednesday. As the world’s largest company by market capitalisation and the main driver of US stock market gains this year, any disappointment in its results could dent risk appetite, trigger profit-taking, and increase flows into safe-haven assets — potentially creating fresh upside for gold.
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