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Gold Prices Rise; All Eyes on U.S. Q2 GDP Data, Fed Meeting

Published 07/26/2019, 01:17 AM
Updated 07/26/2019, 01:39 AM
© Reuters.
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Gold futures for August delivery on the Comex division of the New York Mercantile Exchange inched up 0.1% to $1,415.25 a troy ounce by 1:13 AM ET (5:13 GMT).

The yellow metal was under some pressure earlier in the day after data showed new orders for durable goods in the U.S. rose by more than double the forecasts for June.

Core capital goods orders also beat expectations by much more than expected, suggesting that business spending on equipment was picking up after it had contracted in the January to March quarter for the first time in three years.

This sign of recovery provides optimism over business investment that has been one of the factors flagged by the Federal Reserve of key concern for contributing to risks of an economic slowdown.

Looking ahead, investors will switch their focus on the second-quarter U.S. gross domestic product data due Friday, and the Federal Reserve meeting next week.

Economists, on average, expect the economy slowed to a pace of 1.8% in the second quarter from the 3.1% rate seen in the previous quarter.

But some analysts appear more optimistic on the pace of economic growth.

"We forecast GDP grew at an annualized rate of 2.5% in 2Q19, led by strong contributions from consumer spending and government expenditures. In part, historical data that is about to be revised contribute to this forecast," Morgan Stanley (NYSE:MS) said in a note.

Investing.com - Gold prices inched up on Friday in Asia, but gains were limited as traders remained cautious ahead of the release of the U.S. second-quarter GDP data.

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