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Gold spot prices are currently hovering in the range of $1333.18 to $1321.62 amid market participants anticipation for further impetus. The gold prices marked a continuous surge, which led to the February month high of $1346.79 in the spot market and a February month high of $1349.75 on COMEX gold. The current sluggish movement in gold prices is mainly due to upcoming economic data. The FED chairman, Jerome Powell, is due to testify on the Semi-annual Monetary Policy before the House Financial Services Committee.
Jeremy Powel has although hinted on no further rates hike and has warned of slower growth. The bullion market is waiting for the FED Chairâs final overview over the global and domestic economic condition to gauge the direction of future interest rate further and in turn decide the direction of gold prices, which previously oscillated between U.S. FED rate decision and U.S-China trade resolution. The recent dovish statement from the FED chair led to a decline in dollar prices and in turn supported the gold prices as an expensive dollar makes it difficult to hold the gold as an asset.
The investors are also eyeing on the upcoming U.S. Advance GDP quarter-on-quarter data, due on 28th February 2019, which was reported at 3.4% in the previous quarter. The market is expecting the U.S Advance GDP to decline and mark a level of 2.6%. Any fall beyond the market expectations will further support the gold prices and any rise in the Advance GDP beyond market expectation will exert pressure on gold prices.
The gold is moving at a sluggish range due to the pending figures of major economic data. The U.S. Unemployment Data is due on 28th February 2019. The Unemployment rate has been noticed at 216k previously for the week ended 21 February 2019. However, the market participants are expecting it to mark a level of 228K, any fall beyond the market expectation would be likely to support the gold prices.
The market participants are eyeing on the upcoming figures to reckon the extent of recovery in the global and U.S. economy to gauge the direction of gold prices further. The gold prices rose previously over the disappointing Final Wholesale Inventories monthly data. The U.S. wholesale Inventory monthly data was reported at 1.1% lately, while the market was expecting It to be 0.3%, which marked a significant pressure on U.S. economy and in turn exerted the pressure on dollar prices.
The signs of respite over the U.S.-China trade talks are diminishing and getting offset by the figures of economic indicators used to gauge the performance of an economy. The negative figures still suggest that the U.S. economy is still moving in the doldrums. However, the gold prices are oscillating in a range as market participants are waiting for the cards to unfold over the left-over data. The significant figures are still due for this week and will be watched closely to reckon the present status quo and future forecast.
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