The most liquid gold contract closed Wednesday, 29, as investors assess the outlook for the Federal Reserve’s (Fed, US Central Bank) stance and economic growth projections. Earlier, the final reading for US gross domestic product (GDP) was lower than expected.
On Comex, the metals division of the New York Mercantile Exchange (Nymex), gold for August closed down 0.20% at USD 1,817.50 per troy ounce.
In the first quarter, US GDP declined 1.6%, more than analysts forecast and forecast in previous readings.
Gold is being pushed in two different directions, says TD Securities flamboyant The Fed comes amid fears of a recession.
The bank assesses that gold has benefited from this statement along with an influx of operators to assets considered safe havens. On the other hand, slowing growth and a potential impasse, coupled with persistent inflation, may not deter central banks from continuing to raise key interest rates otherwise, say analysts.
Oanda analyst Edward Moya noted that gold is “stuck” in a trading range, but is now less likely to drop below $1,800 per troy ounce as the dollar has peaked. “Wall Street is likely to move further in anticipation of a rate hike by the European Central Bank, which could lead to a weaker dollar and weaker growth prospects, which should warrant buying gold as a safe haven,” he predicts.
As for sanctions on Russian gold by the United States and other G7 members, Russian Deputy Foreign Minister Sergei Ryabkov said Moscow would work with the current circumstances and find alternatives, the Russian News Agency reported. Riya,