Gold prices climbed today (Wednesday, May 29th, 2024) as investors awaited the release of important economic data from the United States. This data, known as Gross Domestic Product (GDP), tracks how much the US economy has grown. Investors are particularly interested in whether the GDP has grown slowly, quickly, or stayed about the same.
The price of gold is often seen as a safe haven, meaning it tends to go up when other investments become risky. If the US economy isn’t doing well, investors might become nervous and put their money into gold instead of stocks or bonds.
Experts believe the GDP data might show the US economy hasn’t grown much at all. This could be a sign that the Federal Reserve, the US central bank, might lower interest rates. Lower interest rates generally make gold more attractive to investors.
Right now, the price of gold is hovering around $2,358 per troy ounce in the international market. This follows a recent upward trend that began earlier this year.
Silver prices also rose today after a recent decline. Silver recently reached an all-time high, but its price dipped slightly before bouncing back. Experts say this is likely due to investors taking some profits off the table after the record highs.
Similar to gold, silver is seen as a safe haven investment. Its price is also influenced by industrial demand, meaning how much silver is being used for manufacturing.
The price of gold and silver is also affected by the value of the US dollar. When the dollar weakens, it makes gold and silver cheaper to buy for investors using other currencies. Today, the US dollar index, which measures the value of the dollar against a basket of other currencies, is trading below 105. This weakness in the dollar is helping to support the price of gold and silver.
Investors will be closely watching the release of the US GDP data on Thursday. If the data confirms a slow-growing economy, it could further boost gold prices. The release of another economic data point, the core Personal Consumption Expenditures (PCE) price index, is also expected on Thursday. The PCE index tracks inflation, which is the rise in the price of goods and services. If inflation is low, it could also be a reason for the Federal Reserve to lower interest rates, potentially increasing gold’s appeal.
Overall, the price of gold and silver is likely to remain volatile in the near future as investors react to economic data and interest rate expectations.
