Price action Market drivers Gold prices are perking up again following the latest batch of softer-than-expected U.S. economic data which has helped bolster investors’ hopes that the Federal Reserve might forego more interest rate hikes.
A batch of softer-than-expected data on U.S. job openings and consumer confidence helped boost stocks and gold on Tuesday. Prior to that, a batch of weak PMI survey data out of the U.S. and Europe last week helped support the notion that the U.S. economy might finally be slowing, even as the Atlanta Fed’s GDP NowCast expects the U.S. economy to expand by nearly 6% in the third quarter.
“Gold has been relatively steady in the first part of this week, with the spot price holding above $1,900 and little volatility,” said Carlo Alberto De Casa, a market analyst at Kinesis Money, in emailed commentary. “The outlook changed, however. It further improved yesterday after the release of the first significant macroeconomic figures of the week. Both the Job Openings and Labor Turnover and consumer confidence have been softer than forecast,” De Casa said.
Whether gold’s rebound can continue will likely depend on the tone of U.S. economic data released later this week, including Thursday’s PCE inflation data for July and the August employment report out of the U.S.