• Gold advances sharply, gaining over 1% amid weakening US economic indicators.
• Softer US jobs and housing data increase expectations of two 25-bps Fed rate cuts in 2024.
• Rising geopolitical tensions in the Middle East and North Korea-Russia pact enhance Gold's safe-haven appeal.

Gold prices advanced sharply by more than 1% on Thursday during the North American session as US Treasury bond yields advanced to underpin the Greenback. Data from the United States was softer than expected, boosting traders' confidence that the Federal Reserve (Fed) will ease policy at least twice in 2024. The XAU/USD trades at $2,356 at the time of writing.

The latest economic data from the US continued to show that the economy is decelerating, prompting investors to price in two 25-basis-point (bps) interest rate cuts. A worse-than-expected US jobs report revealed the number of Americans filing for unemployment benefits rose above estimates.

US housing data disappoints markets as Building Permits and Housing Starts cooled.

In the meantime, Minneapolis Fed President Neel Kashkari stated that it will likely take a year or two to bring core inflation down to 2%. He added that the trajectory of interest rates would depend on the economic conditions, emphasizing, "We are achieving disinflation despite remarkable economic growth."