Gold trading outlook: futures trade little changed ahead of the US data string

Written by Miroslav Marinov

Miroslav Marinov, a financial news editor at TradingPedia, is engaged with observing and reporting on the tendencies in the Foreign Exchange Market, as currently his focus is set on the major currencies of eight developed nations worldwide.

, | Updated: October 30, 2024

On Thursday gold for delivery in April traded within the range of $1,232.20-$1,241.50. Futures closed at $1,234.60, edging down 0.33% on a daily basis. It has been the 7th drop in the past 19 trading days. The yellow metal has added 10.47% to its value so far during the current month.

On the Comex division of the New York Mercantile Exchange, gold futures for delivery in April were inching down 0.11% on Friday to trade at $1,233.30 per troy ounce. The precious metal went up as high as $1,240.90 during late Asian trade, while the current daily low was at $1,229.30 per troy ounce, recorded during the early phase of the European session.

Demand for haven assets such as gold has recently been supported amid persisting concerns over the potential effects, which the substantial drop in oil prices, may have on other market segments. On Thursday oil futures surged over 2% on the day on the back of information that Saudi Arabia, Qatar, Venezuela and the Russian Federation will hold a meeting next month to discuss crude oil production cuts.

Today gold trading may be influenced by the report on US revised Gross Domestic Product regarding the final quarter of 2015. The second estimate of the US Gross Domestic Product probably pointed to an annualized rate of growth of 0.4% in the fourth quarter of 2015, according to the median forecast by analysts. The preliminary GDP estimate for Q4, reported on January 29th, pointed to an annual growth of 0.7%. In Q3 the US economy expanded at an annualized rate of 2.0%, according to final data. In case the second GDP estimate met expectations or slowed down even further in Q4 2015, this would have a strong bearish effect on the US dollar and a strong bullish effect on gold, as it may bring about concerns over the Federal Reserves monetary policy tightening course. The revised GDP figure is due out at 13:30 GMT.

Another key release to be watched today is the final reading of the consumer sentiment barometer by Thomson Reuters and the University of Michigan. The monthly survey may show that consumer confidence in the United States was lower in February. The final reading of the respective gauge, which usually comes out two weeks after the preliminary data, probably came in at 91.0, up from a preliminary value of 90.7. If market expectations were met, this would be the lowest level since October 2015, when the gauge of sentiment was reported at a final 90.0. In January the index stood at a final reading of 92.0, falling from a preliminary value of 93.3. In case the final value of the February consumer sentiment index outpaced the median forecast by analysts, this would have a moderate bullish effect on the US dollar and a moderate bearish effect on gold. The final report is due out at 15:00 GMT.

Meanwhile, silver futures for delivery in March were losing 0.79% on the day to trade at $15.060 per troy ounce, after slipping to as low as $15.025 during early European trade, or the lowest price level since February 22nd.