Gold stays supported amid wait for US GDP data

The spot gold price stayed supported during Asian trading hours on Friday, October 28, amid the wait for the third quarter advance US GDP number due later today.

Spot gold was recently at $1,270.85-1,271.15 per ounce, up $2.65 from Thursday’s close. Trading ranged at $1,268.10-1,271.15 so far on Friday.

“Prices appear to have found some support but it is too early to say there will not be another down leg. Still, it is encouraging that prices have managed to get some lift given the strength of the dollar. We remain bullish overall but would not necessarily be in a hurry to buy,” William Adams, head of research at FastMarkets, said.

The US dollar index slipped 0.13% to 98.82 recently on Friday – it had reached a nine-month high of 99.12 on Tuesday.

Market focus is now on the advance third-quarter US GDP growth due later today which could affect US monetary policy, the direction of the US dollar and global risk sentiment.

There is wide consensus of 1.3% to 3.6% for this data and thus has the potential to surprise markets, National Australia Bank said on Friday.

Other key US data due later today includes the advance GDP price index, employment cost index and revised UoM consumer sentiment and revised UoM inflation expectations.

In US data released on Thursday, core durable goods orders came as expected at 0.2% while durable goods orders disappointed at -0.1%. Unemployment claims were better-than-expected at 258,000 as were pending home sales at 1.5%.

In other commodities, the Brent crude oil spot price increased 0.58% to $50.55 per barrel, and the Texas light sweet crude oil spot price gained 0.32% to $49.78 so far on Friday.

In equities, the Shanghai Composite slipped 0.3% to 3,121.79 recently on Friday.

In other precious metals, silver was last at $17.66/17.68, up $0.06. Platinum rose $11 to $967/973, and palladium decreased $7 to $612/620 so far on Friday.

On the Shanghai Futures Exchange, gold for December delivery was last unchanged at 278.65 yuan per gram, and the December silver was flat at 4,062 yuan per kilogram.

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