Gold awaits release of key US economic data

The spot gold price drifted within a narrow range during Asian trading hours on Thursday December 22 ahead of the release of a string of US economic data later today.

The spot gold price was recently quoted at $1,131.10/1,131.50 per oz, up just $0.30 on the previous close. Trade has ranged from $1,130.70 to $1,132.65 so far.

“The [USA] will release a series of important macroeconomic data which should impact on the market. The spot gold price has no clear direction yet and will await the data for directions,” China’s Zhengjin Precious Metals said on Thursday morning.

US data due later today includes core durable goods orders, final GDP, unemployment claims, core PCE price index, personal spending, CB leading index and personal income.

November core durable goods orders are expected to rise 0.2% month-on-month while final third quarter GDP growth is expected at 3.3%.

Durable goods order is expected to fall 4.9%, core PCE price index is seen rising 0.1% and personal spending is forecast to increase 0.4%, all on a month-on-month basis in November.

Recent strong US macroeconomic data and optimism over president-elect Donald Trump’s potential infrastructure spending plans have raised expectations of more interest rates increases in the USA next year, boosted the US dollar and increased appeal of risk assets like equities, while decreasing the attractiveness of haven assets like gold.

In US data released on Wednesday, existing home sales in November were at 5.61 million, higher than the forecast of 5.52 million. But weekly crude oil inventories in the country rose 2.3 million barrels against expectations of a 2.4 million barrel decline.

In currencies, the US dollar index fell 0.1% to 102.94 so far on Thursday.

In other commodities, the Brent crude oil spot price rose 0.18% to $54.60 per barrel recently.

In equities, the Shanghai Composite eased 0.05% to 3,136.02 so far today.

In the other precious metals, the spot silver price increased $0.015 to $15.940/15.980 per oz. Platinum gained $6.50 to $916/921 per oz, and palladium increased $3 to $657/662 per oz.

On the Shanghai Futures Exchange, gold for June delivery was recently at 264 yuan ($38) per gram, and the June silver was at 4,017 yuan per kg.

(Editing by Kyle Docherty)

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