(Bloomberg) -- Gold eased from near the highest in 13 months as traders digested the latest US economic data and its potential impact on the Federal Reserve's interest-rate path.
Initial jobless claims were higher than expected last week, underlining the headwinds the American economy is facing. Data on Wednesday showed the US service sector expanded in March at a much slower pace than projected, while companies added fewer jobs than forecast.Â
This week swaps traders have raised their bets for rate cuts later this year on concerns a recession may be looming. That's a boon for non-yielding gold, which typically benefits from looser monetary policy.
Bullion is in sight of a record high after surging in March due to turmoil in the banking sector. Investors will be closely watching for more signs the Fed may be taking the heat out of the economy and putting the brakes on inflation when crucial monthly figures on nonfarm payrolls and unemployment are released on Friday.Â
Spot gold declined 0.6% at $2,009.46 an ounce as of 1:32 p.m. in New York, after this week surging to the highest since March 2022. Â
--With assistance from Yvonne Yue Li.
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