Gold increased sharply then recovered along with GDP
World gold this morning inched up slightly compared to yesterday morning but fell much lower than the high of the day when the newly released report showed the resilient strength of the US economy.
Specifically, the report shows that US GDP in the third quarter increased by 4.9% over the same period last year, higher than economists' expectations of 4.7% and compared to an increase of 2.1% in the first quarter. 2. This data favors those who support the possibility that the US Federal Reserve will continue to raise interest rates at future monetary policy meetings.
Edward Moya, senior market analyst at OANDA, said the data “paints a picture of a very strong U.S. economy,” reinforcing the narrative that the Fed may need to raise interest rates more, which This is detrimental to gold.
Even though the economic data was stronger than expected, Moya was surprised by the yellow metal's strength. “I'm surprised we haven't seen a big drop in gold prices. I think people realize that geopolitical risks are not going away anytime soon,” he said.
Specifically, the report shows that US GDP in the third quarter increased by 4.9% over the same period last year, higher than economists' expectations of 4.7% and compared to an increase of 2.1% in the first quarter. 2. This data favors those who support the possibility that the US Federal Reserve will continue to raise interest rates at future monetary policy meetings.
Edward Moya, senior market analyst at OANDA, said the data “paints a picture of a very strong U.S. economy,” reinforcing the narrative that the Fed may need to raise interest rates more, which This is detrimental to gold.
Even though the economic data was stronger than expected, Moya was surprised by the yellow metal's strength. “I'm surprised we haven't seen a big drop in gold prices. I think people realize that geopolitical risks are not going away anytime soon,” he said.
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