- Gold price falls more than 0.60% due to profit taking and upbeat US economic data.
- US Gross Domestic Product for the fourth quarter topped estimates, while jobless claims fell.
- Durable goods orders rose while new orders fell.
the price of gold It pulls back after hitting a nine-month high of $1,949.16 and falls below $1,940, following the release of the preliminary reading of United States (US) Gross Domestic Product (GDP), among other data. Thus, the XAU/USD is trading at $1933.40, losing 0.49% on the day.
US Fourth Quarter Gross Domestic Product topped estimates
US stock futures rose after the fourth quarter GDP release, while gold extended its losses. The US economy grew at a solid 2.9% quarter-on-quarter, beating estimates of 2.6%, while for the third quarter it rose 3.2%, according to data released by the US Department of Commerce. Meanwhile, for the full year of 2022, the US economy expanded 2.1%, down from the 5.9% recorded in 2021. Inform noted that consumer spending was the main driver of economic growth at the start of the fourth quarter. Spending remains supported by the strength of the labor market and excess savings.
US jobless claims down and durable goods orders up
At the same time, the US Department of Labor reported that initial claims for unemployment benefits for the week ending January 21 fell 6,000 to a seasonally adjusted 186,000, below estimates of 205,000. In other data, durable goods orders rebounded from a -2.1% contraction in November to 5.6% in December, US Commerce Department data showed. However, core new orders contracted a -0.1% MoM, in line with consensus, as the US economy feels the pain of 425 basis points (bps) of tightening by the US Federal Reserve (Fed).
Gold traders brace for Fed inflation gauge on Friday
On Friday, the US economic agenda will include the US Federal Reserve’s preferred inflation indicator, Basic Personal Consumption Expenditure (PCE), with an estimated monthly reading of 0.3%, while the annual is expected at 4.4%. The main data for the PCE is expected to be 0.1% monthly and 5.5% year-on-year.
Gold Technical Analysis
The XAU/USD daily chart remains biased to the upside, although an ongoing correction could push prices towards the psychological $1,900 level or the January 18 daily low of $1,896.74. Below that support, the 20-day EMA lies at $1.89.44, which, once broken, could send XAU/USD towards the January 11 pivot low of 1,867.22. $. As an alternate scenario, if XAU/USD recovers to $1,950, a move towards the psychological $2,000 level is in sight.
|Last price today||1933.51|
|daily change today||-13.22|
|today’s daily variation||-0.68|
|today’s daily opening||1946.73|
|previous daily high||1948.17|
|previous daily low||1919.91|
|Previous Weekly High||1937.57|
|previous weekly low||1896.63|
|Previous Monthly High||1833.38|
|Previous monthly minimum||1765.89|
|Fibonacci daily 38.2||1937.37|
|Fibonacci 61.8% daily||1930.71|
|Daily Pivot Point S1||1928.37|
|Daily Pivot Point S2||1910.01|
|Daily Pivot Point S3||1900.11|
|Daily Pivot Point R1||1956.63|
|Daily Pivot Point R2||1966.53|
|Daily Pivot Point R3||1984.89|
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.