Gold Gains on Revised US GDP Figures and Lower Treasury Yields

Gold rebounded to the $2,340s on Thursday due to a weaker US Dollar following a downward revision of US GDP growth to 1.3% for Q1, from an initial 1.6%. This revision implies a weaker economy and potentially lower inflation, which could lead to reduced interest rates by the Federal Reserve, benefiting gold by lowering its holding costs. However, gold faces pressure from Fed officials suggesting rates will remain high and higher-than-expected inflation in Europe, particularly in Germany and Spain, reducing the likelihood of further rate cuts by the European Central Bank.

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