Gold Pares Losses as Traders Assess Fed Rate Path After US Data

Gold pared losses as traders assessed the Federal Reserve’s interest-rate path after US data showed signs of downside risks under President Donald Trump’s trade agenda.

The US economy contracted at the start of the year for the first time since 2022 on a monumental pre-tariffs import surge and more moderate consumer spending. Separate data showed US consumer spending jumped in March, while a key measure of inflation was flat.

Traders now bet that the Fed will deliver four quarter-point rate cuts this year to help prevent a recession. Lower rates are typically positive for bullion as it pays no interest. ...