Gold Steady Under $1,800 – US GDP Under the Spotlight
The gold price is swinging back and forth in a typical range while trading at $1,800 as the US dollar and Treasury yields recover, keeping bears in charge. Markets are unconvinced that the Fed would modify its tightening cycle in the face of early signals of peak inflation, putting downward pressure on non-interest-bearing bullion.
However, bulls continue to take solace in rising recession fears, fresh Chinese lockup concerns, and a worsening European gas problem. Despite the lackluster trading over the last several days, GOLD XAU/USD is on course for its fourth weekly gain. The focus now shifts to the Fed’s July meeting minutes, which will be released next week, for a new direction in the shining metal.
Meanwhile, Fed rate rise predictions, GDP worries, and Fedspeak will influence the metal price. As a result, the number of Americans filing new jobless claims increased for the second week in a row, signaling continued easing in the labor market amid relatively tight circumstances as the Federal Reserve attempts to curb demand to help manage inflation.
The Labor Department said on Thursday that initial applications for state unemployment benefits increased by 14,000 to a seasonally adjusted 262,000 for the week ending August 6. Reuters polled economists, who predicted 263,000 applications for the most recent week.
The economy of the United States unexpectedly fell in the second quarter, with consumer spending expanding at its weakest rate in two years and business expenditure decreasing. The second consecutive quarterly fall in GDP reflected a more modest pace of inventory building by firms, but total employment increases remained solid.
Gold Technical Outlook
The gold price fluctuates within a sideways track between 1779.25 support and 1802.80 resistance. At the same time, the EMA50 continues to provide positive support to the price, keeping the chances of continuing the bullish trend alive, with its targets beginning with a breach of the mentioned resistance to head towards 1831.95.
On the other hand, breaking 1779.25 will halt the predicted decrease and force the price to reverse downward, testing 1755.70 regions before establishing the next destination. Today’s trading range is likely between 1775.00 support and 1810.00 resistance.
Today’s projected trend: bullish
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