Gold price confined to narrow range, focus on GDP data/Fed

Gold was little changed in London on the morning of Friday, October 28 while market participants focus on the release of US third-quarter GDP growth data today.

The spot gold price was recently quoted at $1,266.90/1,267.3 per oz, down $1.20 on the previous close. Trade has ranged narrowly from $1,265.55 to $1,271.95 so far.

Key US data due later today includes third-quarter advance GDP growth – forecast at 2.5% – as well as the advance GDP price index, the employment cost index and revised UoM consumer sentiment and revised UoM inflation expectations.

Investors hope for further insight on the likelihood of interest-rate movements from the Federal Reserve from today’s GDP data.

If the figures prove positive, the gold price could come under pressure because the dollar would presumably appreciate further on heightened expectations of a rate rise from the Federal Reserve, Commerzbank said in a research note.

“We expect to see a slow steady grind higher into the year-end but remain wary of shocks to US dollar and data influencing FOMC rate announcements, and the US election,” MKS noted, highlighting heavy resistance at $1,275-80 per oz.

In the other precious metals, the spot silver price was unchanged at $17.585/17.605 per oz. Platinum at $963/973 per oz was up $9 and palladium climbed $6 to $611/619 per oz.

 

(Editing by Mark Shaw)

The post Gold price confined to narrow range, focus on GDP data/Fed appeared first on The Bullion Desk.

from The Bullion Desk http://ift.tt/2eTPK9S
via IFTTT