Gold prices are rebounding higher on Friday morning. The newly released U.S. personal income and outlays report for June shows the personal consumption expenditures (PCE) price index increased by 2.5% year-on-year, compared to 2.6% in May. The core PCE index, which excludes food and energy, remained steady at 2.6%, the same as in May. The price of gold is trading at $2,380.91, up $16.35. The price of silver is trading at $27.76, down 9 cents. Gold prices plummet as Shanghai premium vanishes and US GDP surprises. Gold prices experienced a significant decline, reaching near three-week lows against the Dollar, driven by stronger-than-expected US GDP data and the collapse of the Shanghai gold premium. This drop eliminated the incentive for new bullion imports into China, exacerbated by the lack of government stimulus in the world’s largest gold consumer market. Consequently, gold bullion in London fell to $2358 per Troy ounce, down almost 2.5% from the previous day. The Shanghai gold price also dropped 2.4% to ¥552 per gram, erasing nearly all of July’s gains. Despite the recent downturn, UBS notes that factors supporting the gold rally, such as strong central bank buying and geopolitical uncertainty, remain in place.
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