Gold pared losses after weaker-than-expected US business activity data helped underpin the case for Federal Reserve rate cuts this year.
US business activity expanded in April at the slowest pace this year on a pullback in demand that led to the first employment decline since 2020. The S&P Global flash April composite index of output at manufacturers and service providers showed the first contraction in six months. The weaker report underpins the case for rate cuts, which would support non-interest bearing gold.