⚡ Gold prices drop below $3300 amid weak US data poised for monthly gains exceeding 5% ⚡
* Gold has declined but is heading towards its third strongest monthly gain of 2025.
* Traders are considering 100 basis points of Federal Reserve cuts despite inflation remaining high.
* The contraction of US GDP raises recession fears and increases bets on interest rate cuts.
* The core Personal Consumption Expenditures Price Index decreased in line with expectations but remains above the 2% inflation target.
* Gold fell about 0.69% during the North American session on Wednesday after hitting a daily high of $3328. The US revealed an economic contraction and heightened speculation about further interest rate cuts from the Federal Reserve.
* The gold/dollar pair XAU/USD is now trading at $3293 near the week's lows.
* The GDP figures for Q1 2025 disappointed investors, increasing pressure on the Federal Reserve, which is struggling to bring inflation back towards its 2% target.
After the data release, investors rushed to price in 100 basis points of Federal Reserve interest rate cuts, indicating that the federal interest rate will end near 3.45%, according to data from Prime Market Terminal.
