Gold is under pressure as China releases weaker data.
During the Asian session on Thursday, the gold price is hovering around $2,040 per troy ounce. The yellow metal has dropped from its six-month high of $2,052 achieved on Wednesday. The recent surge in gold’s price signals a shift in market mood or profit-taking.
US dollar gained ground when annualized US GDP expanded by 5.2%, compared to 4.9% previously.
Gold had difficulties as the US Dollar (USD) recovered slightly. The US Dollar Index (DXY) is struggling to maintain its gains, now hanging around 102.80. US Dollar (USD) effectively ended its four-day losing run in the previous session, owing to stronger-than-expected. US GDP Annualized figures issued by the US Bureau of Economic Analysis. The annualized growth rate of US GDP in the third quarter was 5.2%. Topping the prior reading of 4.9% and exceeding the market consensus of 5.0%.
Furthermore, Loretta Mester, President of the Cleveland Federal Reserve (Fed), stated. That monetary policy is currently in a favorable position to review future data on the economy. And financial circumstances. While Mester did not rule out more rate increases, she stressed that the decision to execute additional hikes would be data-dependent.
Manufacturing and non-manufacturing PMIs in China fell to 49.4 and 50.02, respectively.
The November NBS Manufacturing PMI fell to 49.4 from 49.5 the previous month, falling short of the projected 50. Increase to 49.7. Furthermore, the Non-Manufacturing PMI fell to 50.02, well below the projected 51.1 and the prior figure of 50.6. These data points point to a reduction in both manufacturing and non-manufacturing activity in China, which might have an influence on global economic sentiment and contribute to a stronger US Dollar, putting pressure on gold prices.Looking forward, the US will disclose critical economic statistics later in the North American session. The Initial Jobless Claims for the week ending November 24 are predicted. To rise to 220,000 from 209,000 the previous week. In addition, the October Core Personal Consumption Expenditure (PCE) Price Index will be announced. With consumer inflation expected to decline. The projected yearly rate is likely to fall from 3.7% to 3.5%.
