FX.co ★ Gold Rebounds to Record Highs

Gold surged to a record high of $4,870 per ounce on Thursday as markets reassessed the balance between resilient U.S. economic data and diminished geopolitical tensions. Revised GDP figures, coupled with strong household spending, confirmed that the economy continues to thrive, reducing the likelihood of immediate policy easing. Meanwhile, inflation data suggested a gradual rather than sharp increase in price pressures, with both headline and core PCE rising 0.2% for the month, aligning with expectations. This indicates that progress in reducing inflation has not stalled, even as economic activity remains strong. Consequently, expectations stabilized around maintaining current policy restraint rather than shifting towards renewed tightening, allowing gold to regain its strength. In parallel, President Donald Trump's withdrawal from tariff threats linked to Greenland and his dismissal of military intervention lowered immediate risks but did not completely eliminate uncertainty, as Denmark and European lawmakers remained wary.