Gold

The latest economic data has sparked renewed optimism in the gold market, with prices climbing over $20 as investors digested signs of cooling inflation and robust economic growth. This positive sentiment comes as the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) price index, shows continued progress in the battle against rising prices.

The Bureau of Economic Analysis (BEA) released its advance estimate of second-quarter GDP growth, revealing unexpected strength in the U.S. economy. Despite economists' predictions of a 2% annualized growth rate, the actual figure came in at a robust 2.8%, surpassing expectations and demonstrating resilience in the face of interest rates at a 23-year high.

As July draws to a close, investors and Federal Reserve officials alike are poised on the edge of their seats, eagerly awaiting two crucial economic reports that will shed light on the health of the U.S. economy. These reports, set to be released on Thursday and Friday, will provide pivotal information just days before the Federal Open Market Committee (FOMC) convenes for its July meeting.

Gold futures rebounded strongly on Tuesday, with the most active August contract reclaiming the $2,400 per ounce mark as traders positioned themselves ahead of crucial economic data releases. This resurgence follows Monday's retreat, which saw gold settle at $2,394.70, just shy of the psychologically significant $2,400 mark.

Gold futures experienced a modest decline on Monday, with the August contract settling just below the significant $2400 per ounce mark. As of 5:15 PM ET, August futures were fixed at $2394.70, down $4.40 from the previous close. The precious metal opened at $2403.70 and reached an intraday high of $2414.14 before retreating.