Gold prices settled in the European market on Friday in a limited range of trading as investors awaited US economic growth data for the second quarter of 2017, which could revive the prospect of accelerating US monetary tightening this year.
Gold prices are trading at $ 1299.60 an ounce from the opening level of $ 1258.85, or $ 1260.88, or $ 1257.40.
Gold prices fell yesterday by 0.1 %, due to corrective and profit taking, after recording a 6 week high of $ 1265.29 an ounce earlier in the session and positive data on durable goods orders in the United States.
Gold prices rose 0.4 % this week, the third weekly gain in a row, on the back of a decline in the likelihood of accelerating the tightening of US monetary policy during the current year.
The possibility fell after the Federal Reserve meeting this week, which showed members ‘concerns about weak levels of inflation in the country. Last week’s price data in the US came below the experts’ expectations.
The Federal Reserve said that inflation levels are still far from the targets even as the economy approaches the boom, stressing that short term risks to the economic outlook are almost balanced and that the bank is continuing to follow inflation indicators.
In order to reassess these possibilities again, investors will be looking later for US economic growth data for the second quarter of 2017. The positive data will revive the prospects for the Federal Reserve to cut the balance sheet by September and raise interest rates for the third time during the December meeting /Dec.
The preliminary reading of GDP in the United States is expected to be released by 12:30 GMT, and forecasts are expected to grow by 2.5% in the second quarter 2017, and the first quarter of 2017 grew by 1.4%.
Gold holdings in the SPDR Gold Trust Fund The world’s largest gold-backed fund fell yesterday by 3.54 metric tons, the fifth consecutive daily decline, to 791.88 metric tons, the lowest level since March 14, 2016