The world spot gold price is currently down more than $29, down to $1,942 an ounce. The precious metal plunged right in the US session, after the country's second-quarter GDP data was released.
The US Department of Commerce today reported that the country's second-quarter GDP grew by 2.4% (yearly adjusted). This pace was higher than the first quarter and larger than analysts' forecast in a survey by data firm Refinitiv (1.8%).
"Gold is suffering a double shock. Jobless claims suggest a stronger-than-expected job market. GDP figures suggest a US recession is unlikely at the moment. These developments will open the door to a recession. way for a rate hike," said Phillip Streible, chief strategist at Blue Line Futures.
After the US GDP was released, the Dollar Index - which measures the strength of the greenback against a basket of major currencies - rose 0.7% against its rivals. A rising dollar makes gold more expensive for buyers in other currencies. Yields on 10-year US government bonds also rose to 3.9%.
BUY GOLD | 1911 - 1913
SL: 1908
TP1: 1923
TP2: 1925
The US Department of Commerce today reported that the country's second-quarter GDP grew by 2.4% (yearly adjusted). This pace was higher than the first quarter and larger than analysts' forecast in a survey by data firm Refinitiv (1.8%).
"Gold is suffering a double shock. Jobless claims suggest a stronger-than-expected job market. GDP figures suggest a US recession is unlikely at the moment. These developments will open the door to a recession. way for a rate hike," said Phillip Streible, chief strategist at Blue Line Futures.
After the US GDP was released, the Dollar Index - which measures the strength of the greenback against a basket of major currencies - rose 0.7% against its rivals. A rising dollar makes gold more expensive for buyers in other currencies. Yields on 10-year US government bonds also rose to 3.9%.
BUY GOLD | 1911 - 1913
SL: 1908
TP1: 1923
TP2: 1925
