Article by: ETO Markets

Gold prices (XAU/USD) climbed above $2,070 during the Asian session, propelled by a weaker US Dollar. Currently at $2,080, the metal gained 0.09% for the day.

The US Dollar Index (DXY) hit a July low at 100.85, and 10-year Treasury yields dropped to 3.80%.

Expectations of early Fed rate cuts rose after a decline in November's US Core PCE, weakening the Greenback and supporting gold. Markets anticipate an 88% chance of a March rate cut and fully price in a cut in May.

The US Richmond Fed Manufacturing Index for December was -11, below expectations. Thursday's focus is on weekly Jobless Claims, expected to rise by 210K.

China's efforts to boost domestic demand for economic recovery may positively impact gold, as it's a major consumer.

Market attention remains on US Jobless Claims, Trade Balance, and November's Pending Home Sales, though their impact may be limited.