Gold on The Rise as Weak Data Reveals Slowdown in US Economic Recovery

Gold prices are climbing higher over a weakness in the dollar following the release of disappointing economic data from the US.

Gold on The Rise as Weak Data Reveals Slowdown in US Economic Recovery

Early on Friday, gold prices are climbing higher over a weakness in the dollar following the release of disappointing economic data from the US. At the time of writing, GOLD is trading at a little above $1,952.

The latest weekly jobless claims figures for the past week revealed that almost 30 million Americans were depending on unemployment benefits until the end of August. Meanwhile, housing starts in the US also posted a decline in August after rising for three consecutive months and the Philly Fed manufacturing index also slid lower in September from the previous month.

The latest figures suggest that economic recovery in the US is slowing down, helping support the safe haven appeal of gold. The weak economic data also sent US bond yields lower, which sent gold prices higher again.

Exports of gold from Switzerland to the US came to a near halt in the month of August, after climbing higher from the beginning of the pandemic. However, the prices of yellow metal continue to remain high as the world’s largest consumers of physical gold, China and India, continued to rise.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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