Gold Drifts Lower Ahead Of US GDP Data
Gold prices moved lower in choppy trade on Friday and the dollar stood tall against its peers as investors braced for a strong reading on U.S. GDP that could pave the way for a further rise in interest rates.
Spot gold was down 0.52 percent at $1,218.90 an ounce and remained on track for its third straight weekly declines. U.S. gold futures were down 0.64 percent at $1,217.90 an ounce.
U.S. second-quarter GDP growth is expected to be anywhere between four and five percent, a very impressive number, thanks to the boost from the GOP tax cuts of late 2017. Strong data could boost the dollar and push bond yields up, denting appeal for bullion.
In addition, the Bank of Japan board meets for a rate review on July 30-31 amid speculation over whether it will shift away from its ultra-loose monetary policy.
The central bank is widely expected to tweak its yield-curve control program to allow for a more natural rise in long-term interest rates.
by RTTNews Staff Writer
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