Gold supported by expectations of slower US growth in Q4

The spot gold price posted slight gains during Asian trading hours on Tuesday December 27 amid expectations of a slowdown in the US economy during the fourth quarter of this year.

The spot gold price was recently quoted at $1,137.10/1,137.40 per oz, up $3.30 on the previous close. Trade has ranged from $1,131.70 to $1,138.20 so far.

More economic forecasts are showing that the US economy could slow down in the fourth quarter which could lead to downward pressure on the US dollar, China’s Zhengjin Precious Metals said on Tuesday morning.

The broker is positive on the spot gold price in the near-term, with short-term support seen at $1,120 per oz and resistance at $1,150.

The US’ final third quarter GDP growth was last week revised upwards to 3.5% from 3.2%, but latest forecasts show that the growth is slowing in the fourth quarter of the year.

Last week, economists at the New York Federal Reserve estimated growth of 1.8% in the fourth quarter of this year and first quarter of next year, while the Atlanta Federal Reserve Bank’s latest forecast for fourth quarter GDP growth was at 2.5%.

In data released today, Chinese industrial profits rose 9.4% year-on-year to 6.03 trillion yuan in January-November, which is up 0.8 percentage points from January-October, according to data released by the country’s National Bureau of Statistics on Tuesday.

US data due later today includes the S&P/CS composite-20 HPI, CB consumer confidence and Richmond manufacturing index.

In currencies, the US dollar index rose 0.11% to 103.12 so far on Tuesday.

In other commodities, the Brent crude oil spot price gained 0.25% to $55.16 per barrel recently.

In equities, the Shanghai Composite eased 0.13% to 3,118.61 so far today.

In the other precious metals, the spot silver price increased $0.10 to $15.810/15.830 per oz. Platinum gained $11 to $899/904 per oz, and palladium rose $10 to $664/669 per oz.

On the Shanghai Futures Exchange, gold for June delivery was recently at 265.40 yuan ($38) per gram, and the June silver was at 4,005 yuan per kg.

(Editing by Kyle Docherty)

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