Precious metals gain momentum after weak US GDP numbers
Following the US Q1 GDP numbers, which came in 1.6% lower than expected (2.5%), gold prices rose yesterday. Higher Treasury rates are supported by a sharp increase in Q1 inflation to 3.7%, which dampens prospects for an early reduction in Fed policy.
4/30/20241 min read
Precious metals gain momentum after weak US GDP numbers
Fundamental News and Triggers
Now that the likelihood of a wider conflict in the Middle East has significantly decreased, implied gold volatility has seen a noticeable decline. Naturally, this has caused the price of gold to decline somewhat but is still quite high.
Following the US Q1 GDP numbers, which came in 1.6% lower than expected (2.5%), gold prices rose yesterday. Higher Treasury rates are supported by a sharp increase in Q1 inflation to 3.7%, which dampens prospects for an early reduction in Fed policy.
In response to worries about ongoing inflation pressure, Fed officials continue to take a cautious approach to monetary policy.
Technical Triggers
Gold prices got support around $2305 and prices have reversed and it is expected that prices will be consolidating between $2300-2350.
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