Gold Price Bounces on Weak US GDP Data

Jon Economy, Gold, Market Commentary, Precious Metals

GOLD PRICES bounced but then fell back to 2-week lows against the Dollar lunchtime Friday in London as the US currency shrugged off weaker-than-expected GDP growth data from the world’s No.1 economy.
US gross domestic product grew 1.9% annualized in the fourth quarter of 2016 according to the Bureau of Economic Analysis’ first estimate, missing Wall Street forecasts and falling hard from Q3’s reading of 3.5% per year.
Price inflation rose above 2.1% per year for the quarter, led by fuel and food costs – its fastest pace since Q4 2012.
Gold prices initially popped $5 but then fell back to $1181 per ounce, heading for their lowest weekly finish in three, some 3.2% beneath Monday’s 2-month highs.
European stock markets slipped back after New York’s Dow Jones index recorded another new all-time high above 20,100 points last night.
“Resistance [in gold prices] is unchanged at $1220.20…[this week’s] high,” says the latest technical analysis from Canadian-based Scotia Bank’s New York bullion team, still “biased to the upside as long as gold closes above $1183.”

This post was published at FinancialSense on 01/27/2017.