empty
29.10.2021 09:34 AM
Gold rises on US GDP data

This image is no longer relevant

US GDP data was released on Thursday. It showed a slowdown in the country's economic growth, causing the dollar to fall and gold prices to jump.

During yesterday's trading, the metal once again managed to break the $1,800 level and ended the session above that mark.

The bullion prices were supported by US gross domestic product data for the third quarter released on Thursday. The country's Commerce Department reported GDP growth of just 2% year-on-year, compared to a 6.7% increase in April-June.

According to experts, the spread of the delta strain of coronavirus is the reason for the slowdown of the US economic recovery. The outbreak of the disease in a number of countries has again triggered supply disruptions.

"Economic growth slowed in the US and that would support the gold market in the perspective that the Federal Reserve would be less likely to either taper asset purchases at a quicker pace or the outlook for higher interest rates would be curtailed," said David Meger, director of metals trading at High Ridge Futures.

The possibility that the US Federal Reserve will not tighten its monetary policy too aggressively, even if inflation remains high, had a negative impact on the US currency.

The dollar index fell 0.6% against its major counterparts on Thursday, hitting a one-month low. Also, US 10-year government bond yields showed a downward trend amid concerns about the global recovery.

All these factors served as an excellent boost for gold, which has already gained in two sessions and is now heading for its third consecutive weekly gain. Yesterday, December gold rose $3.80, or 0.2%, to settle at $1,802.60 an ounce. The final price was $1,802.60.

This image is no longer relevant

The metal last managed to close above a key level on Monday. It was boosted by fears of global inflationary growth.

According to Meger, gold is considered an inflation hedge. Therefore, price increase is the catalyst that will help the precious metals market to move forward. He think that we will see rise in the price of gold and silver in the coming weeks.

"Gold may hit a fresh record high in the next 12 months as investors seek haven from a buildup of inflationary pressures," Sean Boyd tells Bloomberg.

"Inflation is not transitory," Boyd said, noting that costs pressures are "more sticky" than three months ago. "We'll see higher inflation as we move down the road, which is generally a very favorable environment for gold."

Boyd expects bullion to surpass the current record of $2,075.47 an ounce reached in August last year.

As for the precious metal's short-term outlook, all investors' attention is now focused on the US Federal Reserve's meeting on November 2-3. The Fed is expected to announce the start of a reduction in bond purchases.

"Fed tapering should already be well and truly discounted, although there is bound to be a short-lived knee-jerk reaction to the Fed's statement next Wednesday – there always is!" StoneX analyst Rhona O'Connell said.

Right now, the more important pricing factor for the asset is an interest rate hike. And in the light of the latest US GDP data, no sooner should this issue be expected, which is good for bullion.

�lena Ivannitskaya,
Experto analítico de InstaForex
© 2007-2025
Seleccione el marco de tiempo
5
min
15
min
30
min
1
hora
4
horas
1
día
1
s.
Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO

Recommended Stories

La tecnología en auge: Snowflake y Alphabet brillan mientras cae el sector solar

Dow y S&P 500 terminaron la jornada sin cambios, mientras que el Nasdaq subió un 0,28%. Snowflake se disparó. Alphabet alcanzó su nivel más alto en casi tres meses

11:26 2025-05-23 UTC+2

Israel, Irán y el barril del miedo: el petróleo vuelve a subir

Durante la sesión asiática del miércoles por la mañana, el petróleo subió repentinamente un 1,5% gracias a las noticias procedentes de Oriente Medio. Las sospechas de un posible ataque

Natalia Andreeva 11:03 2025-05-21 UTC+2

El Bitcoin no teme los problemas de calificación crediticia de EE. UU. y sigue apuntando al alza. Los índices S&P 500 y Nasdaq100 también

La primera criptomoneda intenta mantener un nivel alto, aunque no siempre lo consigue. No obstante, el Bitcoin casi se ha consolidado en una posición de liderazgo, a pesar

Larisa Kolesnikova 11:03 2025-05-21 UTC+2

El dólar sin futuro: la venta masiva apenas comienza

Hasta hace poco, el dólar parecía intocable: el ancla mundial, el refugio monetario, la última palabra en confianza global. Pero hoy cada vez se escucha más otra retórica: sobrevaloración, agotamiento

Аlena Ivannitskaya 08:22 2025-05-20 UTC+2

Bitcoin: qué esperar esta semana. ¿Se mantendrá el récord con la subida hasta los $107 000?

A la primera criptomoneda le toca mantener sus posiciones, aunque a veces le resulta difícil. En este momento, el BTC ha salido adelante, por lo que la tarea de conservar

Larisa Kolesnikova 14:34 2025-05-19 UTC+2

El consumidor estadounidense pierde impulso: lo que dicen Target y Lowe's

En la próxima semana, Wall Street centrará su atención en los informes de las principales cadenas minoristas de EE. UU., que ayudarán a evaluar cómo afectan a la economía

12:39 2025-05-19 UTC+2

STOXX 600 alcanza nuevas cimas: ¿hacia dónde se dirige el crecimiento y qué les espera a los inversores?

Cisco sube tras la mejora de previsiones para el ejercicio fiscal UnitedHealth cae por un informe que menciona una investigación penal El índice europeo STOXX 600 apunta a su quinta

12:47 2025-05-16 UTC+2

Trump contra el dólar: por qué a la Casa Blanca le conviene una moneda débil

Algo extraño le está ocurriendo al dólar: se debilita, pero nadie lo reconoce oficialmente como una debilidad. El Departamento del Tesoro repite su mantra sobre una "moneda fuerte", Trump guarda

Аlena Ivannitskaya 13:23 2025-05-15 UTC+2

El Bitcoin y altcoins al alza, gracias a los datos de inflación y la tregua temporal entre EE. UU. y China

El miércoles 14 de mayo de 2025, el mercado de criptomonedas respiró aliviado tras la publicación de unos datos de inflación más moderados en EE. UU. de lo que esperaban

Natalia Andreeva 13:33 2025-05-14 UTC+2

NRG Energy despega tras un acuerdo de $12 mil millones — ¿nuevos actores en el sector energético?

Índices al alza: Dow +2,81%, S&P 500 +3,26%, Nasdaq +4,35%, Las acciones superan a los activos refugio por distensión comercial Apple sube ante posibles aumentos de precios en iPhone Índice

12:10 2025-05-13 UTC+2
¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.