Gold prices whipsawed but ended higher on the trading session, as stronger than expected U.S. GDP data weighed on prices. U.S. GDP growth accelerated to
Gold prices whipsawed but ended higher on the trading session, as stronger than expected U.S. GDP data weighed on prices. U.S. GDP growth accelerated to a 2.1% pace in Q3 in this second look at the data, exactly as forecast, compared to the 1.5% pace in the Advance report, and versus Q2’s 3.9% and Q1’s 0.6%. Q3 consumption was disappointing, revised down slightly to a 3.0% rate from 3.2% previously. But, fixed investment was bumped up to 3.4% versus the prior 2.9%, still led by strength in residential spending, up 7.3%, with non-residential up 2.4%.
Support on gold is the November lows at 1,063, while resistance is seen near last week’s highs at 1,089. Momentum remains negative but the trajectory of the MACD (moving average convergence divergence) index is flat pointing to consolidation. The RSI (relative strength index) moving higher with price action climbing above the 30 oversold trigger level and printing at 32.
David Becker focuses his attention on various consulting and portfolio management activities at Fortuity LLC, where he currently provides oversight for a multimillion-dollar portfolio consisting of commodities, debt, equities, real estate, and more.