Gold has been experiencing some volatility. After rallying earlier in the week, it has slipped, struggling to hold support near its 50-day moving average.

• Mixed US economic data is influencing gold. Stronger-than-expected durable goods data and firm inflation readings, despite weakness in GDP and rising jobless trends, are creating conflicting signals for traders.
• Sticky US inflation (PCE at 3.7%) is limiting the Federal Reserve’s (Fed) rate cut timing, which weighs heavily on gold’s outlook. Higher real yields tend to cap gold’s upside.
• A ceasefire in the Middle East has calmed geopolitical concerns, leading to a mild recovery in equities and limiting demand for safe-haven flows into gold. This has shifted risk sentiment.
• Central bank policies from Europe (ECB) and China (PBoC) with interest rate easing underpin gold due to reserve diversification. Central banks continue to be significant gold buyers.