Gold surges to conquer $1750 on US Q2 GDP reading

Gold price advances more than 1%, recording back-to-back gains for the first time since July 21-22. The US Q2 GDP, on its preliminary reading, contracted, meaning the US is technically in a recession.

The US economic calendar on Friday will update the Fed’s favorite inflation gauge, alongside the UoM Consumer Sentiment.

Gold Price breaks above the top of the $1700-$1720 range and rallies towards the $1750 area, where the non-yielding metal will face solid resistance, led by the July 8 daily high at $1752.46. The Gold Index is trading at $1753.62.

Gold rises on mixed sentiment and falling US bond yields. Global equities are mixed, though US stocks are trimming some of Wednesday’s gains, courtesy of the Fed’s slightly dovish stance.

Although Fed Chair Jerome Powell acknowledged that production and spending were slowing down, he reiterated that the Fed would continue hiking rates, opening the door for another exceptionally increase. After that, the US central bank would become data-dependent and could slow the pace of tightening.

Gold price reaction to that climbed from $1718.60 to $1738.28 and finished trading around $1733.10. On Thursday, the XAUUSD is gaining almost $20 and is up 1%.

The US Advance GDP for Q2 showed signs that the economy is further deteriorating. The US Department of Commerce revealed that GDP shrank at a 0.9% YoY pace after declining 1.6% in the first quarter, meaning that the US is in a technical recession.