Gold prices settle over 1% higher

Gold bars

Gold prices extended their gains on Thursday as the US Treasury yields declined. This came amid market assessments of potential monetary easing in the US, fueled by optimism over easing inflationary pressures.

Gold futures for February delivery leapt 1.2%, or $33.1, to close at $2,750.90 per ounce, the highest level since Dec. 11, 2024 ($2,756.7).

Meanwhile, the dollar index, which measures the performance of the US currency against a basket of six major peers, fell 0.1% to 108.99 points at 11:16 pm Makkah time.

Federal Reserve Governor Christopher Waller expects interest rate cuts in the first half of 2025, provided future inflation data aligns with the positive December report. He also noted that a rate cut in March is potential.

Economic data revealed a slowdown in US retail sales, rising by 3.9% year-on-year in December, compared to 4.1% in November. Additionally, jobless claims increased by 14,000 to 217,000 last week, exceeding forecasts of 210,000.