Gold was steady in subdued trading on Friday morning, mostly driven once more by expectations about the timing of the US Federal Reserve’s first interest-rate rise in more than a decade.
The spot gold price was last at $1,127/1,127.40 per ounce, up $1 on Thursday’s close. Trade has ranged from $1,124.50 to $1,133.10 so far.
Overnight, US equities closed more than two percent higher. Better-than-expected US data on Thursday helped to calm sentiment after what has been a volatile week for global markets.
The US preliminary GDP quarter-over-quarter jumped 3.7 percent – beating the forecast of 3.2 percent and above the previous reading of 2.3 percent – while the preliminary GDP price index quarter-over-quarter was at 2.1 percent, above the estimate of two percent.
And US weekly initial jobless claims stood at 271,000, below estimates of 275,000 and under the psychological 300,000 mark.
“Gold has not done much over the past few days and therefore its short-term trajectory is somewhat up in the air at this point,” INTL FCStone analyst Edward Meir said.
“However, we think prices will likely head lower over the next few days, since gold is not only selling off on bearish news, but more importantly, it does not seem to be pushing higher on bullish news, such as when equities are under pressure,” Meir added.
Today, the Shanghai composite index closed at 3,232.349, up 4.82 percent and building on Thursday’s uptick – still, they ended the week down more than eight percent.
US data today includes goods trade balance, the core PCE price index, personal spending, personal income, revised UoM consumer sentiment and revised UoM inflation expectations are due.
“Headlines out of Jackson Hole, as the symposium unfolds, could also create some price volatility,” UBS analysts noted.
Market participants will parse the language of various Fed officials during the multi-day Jackson Hole Symposium in Wyoming for any clues on the central bank’s decision whether to raise interest rates or not.
“Gold will remain subdued until commodities have snuffed out their lows and inflation is back on the cards; it appears now we may be waiting a little longer than we initially anticipated,” broker Triland said.
As for the other precious metals, silver was last at $14.40/14.45 per ounce, down 10 cents. Platinum drifted $6 lower to $998/1,003 and palladium at $563/568 was $7 softer.
(Editing by Mark Shaw)
The post Gold stable above $1,120/oz, volatility eases as weekend nears appeared first on The Bullion Desk.
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