Gold price has lost traction in Thursday’s Asian session.
The gold price (XAUUSD) is trading in negative territory on Thursday, aided by a stronger US dollar (USD) and rising US rates. The decreased prospect of a Federal Reserve (Fed) rate drop in September puts some selling pressure. On the precious metal because it raises gold’s opportunity costs.
Gold dealers are looking for new impetus from the US Q1 GDP figures, as well as monitoring geopolitical dangers in the Middle East.
On Thursday, investors will watch the second estimate of the US Gross Domestic Product (GDP) for the first quarter of 2024. If the US economy displays A stronger than expected result might boost the USD. And weigh on the USD denominated gold price. Nonetheless, persistent geopolitical concerns in the Middle East may benefit conventional safe-haven assets such as gold. Also, increased central bank demand may limit the downside for yellow metal in the near future.
Daily Market Movers: Gold price stays poor despite higher US data.
According to CNN, the Israeli military announced on Wednesday. That it had acquired “operational control” over the Philadelphi Corridor, a 14-kilometer (8.7-mile) strip of territory along the border between Gaza and Egypt.
Last week, the World Gold Council reported a net outflow of 11.3 metric tons from global physically-backed gold Exchange-Traded Funds (ETFs).
Fed Atlanta President Bostic announced on Thursday that the The breadth of price growth remains large. But lower inflation breadth would boost confidence in a rate cut.
From early April to mid-May, economic activity in the United States remained strong, and prices rose somewhat. Overall outlooks were more negative, with indications of rising uncertainty and increased downside risks, according to the Fed’s Beige Book, which was issued Wednesday.
According to the CME FedWatch Tool, markets are pricing in a 50% chance of the Fed keeping interest rates unchanged in September.
The US Gross Domestic Product (GDP) is expected to grow at a 1.3% annual rate in the first quarter of 2024.
