After the release of the US GDP in Q2 last Friday, gold prices have soared up to $1350.00 per ounce. As it became known, US GDP in Q2 has grown by 1.2% against the forecast of 2.6%. This trading week, the rise in gold prices has continued. Last Friday’s weak US economic data has reduced chances of the interest rate increase in the USA in the near future, which increases the attractiveness of gold.
At the end of the trading session at COMEX on Monday, December futures for gold rose by 0.2%, up to the level of 1359.60 USD per Troy ounce. The price of gold has been increasing for the fifth session in a row.
At the opening of today's trading day spot price of gold amounted to 1353.00 USD per ounce. The price continued to grow at the European session.
It is likely that the gold prices will continue to grow until the release of the US labor data on Friday (14:30 GMT+2).
Last week the UD Fed left interest rate unchanged at the level of 0.5%, saying also that the short-term risks to the economic growth have declined. The Fed upgraded assessment of the state of economy and highlighted improvements in the labor market. The American Central Bank indicated possibility of the interest rate increase in the next few months, although, the Bank has not specified that it would happen in September. It is likely now that the rate may be increased by 0.25% in December.
Gold prices are also rising on expectations of economic stimulus measures from the Central banks of other countries.
Many economists believe that in case of the weak US macro-economic data, the price of gold can go up to $1.400 per ounce by end of the year by would be real.