Gold price retreats on Thursday during the North American session, failing to gain traction amid a session characterized by a weak US Dollar, which is testing levels last seen in February 2022. The XAU/USD trades at $3,331 and prints modest losses of 0.05%.

The yellow metal is struggling to rally despite the Greenback being near three-and-a-half-year lows and US Treasury yields plunging. Solid economic data in the United States (US) kept bullion from advancing, even though market participants got slightly ahead of themselves, pricing in two rate cuts toward the end of 2025.

US jobs data revealed that the number of Americans filing for unemployment claims came below forecasts, while Durable Goods Orders for May crushed estimates. The final printing of the Gross Domestic Product (GDP) for Q1 2025 confirmed that the economy lost traction, contracting more than expected and by a larger margin than the previous figure.

In addition to this, a Wall Street Journal article revealed that US President Donald Trump is considering nominating the next Federal Reserve Chair by September or October, which would replace Jerome Powell in eleven months. This would create confusion among investors, who would also have to review the comments of the Trump nominee.

Aside from this, Fed officials have echoed some of Powell's remarks, including Boston Fed President Susan Collins, Richmond Fed President Thomas Barkin, and Governor Michael Barr.

Source: Fxstreet