Economic data exceeds expectations and puts pressure on gold price

The gold price has continued its steady pattern from yesterday, albeit facing downward pressure from the continuing threat of a recovering dollar and good economic data, but has proved resilient by the ongoing threat from North Korea. The dollar’s recovery, which has seen it rise up from its 15-month low on Tuesday, can be attributed to improving economic data from the US and improving conditions in China.

Gold was buoyant above the key $1,300 threshold, with spot gold down 0.4% to $1,303.11 at 06:38 BST, but is on track for a near 3% gain for the month. US gold futures for December dropped 0.4% to $1,308.50.

The US economic data released this week included growth figures for August, which suggested that in Q2 the US grew at a rate which would equate to a 3% annual increase, up from the 2.8% predicted—a rate not seen in over two years. The American private sector hired 237,000 workers for August compared to the predicted 185,000, according to the ADP national employment report, which is the highest increase in nearly half a year.

Further economic data is due to come out tomorrow from the US Department of Labour. The key number of new non-farm jobs was predicted to be 180,000, similar to the ADP report, but given the ADP report exceeded expectations, data from the Department of Labour may well further cement a positive view on the trajectory of the US economy.

Progress in diplomatic negotiations with North Korea looked to be dashed after US president Donald Trump brashly declared “talking is not the answer”, but was quickly brushed aside by his Defence Secretary, James Mattis, who interjected that the US was “never out of diplomatic solutions”; Russia demanded the US showed restraint towards the situation.

Photo credit: wutwhanfoto

Link to this article: : http://www.goldmadesimplenews.com/gold/economic-data-exceeds-expectations-and-puts-pressure-on-gold-price-13373/

Posted by on Aug 31 2017. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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