US Economic Strength Bolsters Dollar

The US Dollar gained support from robust economic data, reinforcing expectations for a hawkish Federal Reserve. Third-quarter GDP growth was reported at 3.4%, surpassing estimates, while initial jobless claims fell to 194,000, indicating a resilient labor market. This economic strength is seen as keeping pressure on the Fed to maintain a tight monetary policy, even after its recent decision to pause rate hikes.

Silver Hits New Yearly Lows

Silver prices accelerated their decline on Thursday, falling to fresh yearly lows near the $52.60 level. The move was primarily attributed to the strengthening US Dollar and market anticipation of further interest rate hikes by the Federal Reserve.

Divergent Central Bank Policies Weigh on Euro

The Euro weakened significantly, hitting a 17-month low against the US Dollar after the European Central Bank opted to hold interest rates steady. ECB President Lagarde confirmed that a rate hike was debated, but the ultimate decision to pause contrasted with the hawkish sentiment surrounding the US Fed. Similarly, the British Pound saw volatility as markets digested a UK budget announcement that was viewed as having a limited impact on the Bank of England's policy path.

Gold Supply and Industry News

On the supply side, Resolute Mining announced that its Syama gold mine in Mali has largely stabilized after operational disruptions, with a rebound in output now expected. In other industry news, a London gold trade association has expressed support for the exploration of tokenized assets to finance new gold projects.