Gold price awaits US GDP data
New York (Aug 27) Gold prices trade dead flat as investors prefer to stay on the sidelines ahead of the second estimate of the US Q2 GDP.
Gold at risk of upward revision of GDP
The markets are worried that the slowdown in China and the turmoil in the financial markets could weigh over the US economy and deter Fed from raising rates. However, the consensus estimate calls for an upward revision of the Q2 GDP to 3.2% from the initial estimate of 2.3%.
Consequently, metal is at a risk of an upward revision of GDP, which would calm market nerves and push up rate hike bets in the US. Prices have already retreated from the high of USD 1169 due to the stabilization in the equities and the resulting rebound in the USD.
Gold Technical Levels
THe metal currently trades around USD 1125/Oz. The immediate support is seen at 1116.90 (previous day’s low), under which the metal could target 1100 levels. On the other hand, resistance is located at 1128.40 (daily high) and 1132.90 (Nov 2014 low).