Market News

(Bloomberg) -- Gold climbed to an all-time high as the dollar pushed lower with traders assessing the outlook for the Federal Reserve’s interest rate path after US data showed resilience in the job market and consumer spending.

The US economy expanded in the third quarter by slightly more than initially reported, supported by stronger exports and smaller drag from inventories. Initial jobless claims steadied at 200,000 last week. There also was a smaller-than-expected increase in applications for US jobless benefits, indicating fewer layoffs. And, personal spending rose at a solid pace in November, underscoring consumer resilience.

The dollar slipped after the data, helping bullion gain as much as 2.1% to $4,930.96 an ounce on Thursday, about $70 away from a milestone of $5,000 an ounce and surpassing a previous peak of $4,888.42 reached the prior session. Silver climbed to a fresh peak topping $96. Swap traders continue to expect the Fed to delay interest-rate cuts until later in 2026.

“Gold seems to be responding to the weaker dollar” during US trading, said Bart Melek, global head of commodity strategy at TD Securities. While haven demand for the precious metal eased after the US softened rhetoric on acquiring Greenland, “if we see a dovish Fed come May, rates may get cut later in the year,” said Melek. And that’s supportive to non-yielding bullion.

Goldman Sachs Group Inc., meanwhile, lifted its year-end gold price forecast to $5,400 an ounce from a previous estimate of $4,900, citing intensifying demand from private investors and central banks. Analysts Daan Struyven and Lina Thomas said in a note Wednesday risks were “significantly skewed to the upside because private-sector investors may diversify further on lingering global policy uncertainty.”

Silver climbed as much as 3.8% to more than $96 an ounce, reversing an earlier loss. The metal has tripled over the past year, boosted by a historic short squeeze and a wave of retail buying that left banks and refiners scrambling to meet unprecedented demand.

Confusion surrounding a Chinese policy update on export licenses has amplified the perception of scarcity, while the market remains exceptionally volatile even after the US refrained from slapping blanket import tariffs on critical minerals including silver and platinum.

Gold rose  to $ an ounce as of 4:36 p.m. in New York. Silver advanced  to $96.19. Platinum and palladium also rose. The Bloomberg Dollar Spot Index, a key gauge of the greenback’s strength, fell .

--With assistance from Preeti Soni, Jack Ryan and Yihui Xie.