Gold Prices Decline on Robust U.S. Economic Growth

On Thursday, gold prices experienced a decline, closing below $1,950 an ounce, following the Federal Reserve's decision to raise interest rates to their highest level in 22 years. This move by the Fed was accompanied by a positive outlook from their staff, who now see a U.S. recession as avoidable.

The decline in gold prices was further fueled by robust data on second-quarter U.S. economic growth, which exceeded expectations. This led to a surge in both the dollar and Treasury yields, resulting in the precious metal's prices reaching their lowest point in over two weeks.

Michael Armbruster, managing partner at Altavest, pointed out that the stronger-than-expected U.S. GDP growth and the subsequent increase in long-term Treasury yields and the U.S. dollar index were all unfavorable factors for gold prices.

During the second quarter, the U.S. economy achieved a 2.4% annual growth rate, surpassing the analysts' earlier forecast of a 2% increase in GDP.

Louis Navellier, the chief investment officer and founder of Navellier & Associates, stated in a client note on Thursday that as the market's expectations for a Fed rate cut were postponed, the U.S. dollar gained strength, leading to a drop in the value of gold.

XAUUSD BUY 1950 - 1948🕯🕯

✅ TP1: 1955
✅ TP2: 1960
✅ TP3: 1965

❌ SL: 1944

Comment:

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