"How US GDP Data Influences Gold Prices" 19-12-2024

On December 19, 2024, gold prices (XAUUSD) surged while the US dollar weakened following the release of disappointing US Q4 GDP data. The worse-than-expected GDP raised economic concerns, prompting investors to seek safe-haven assets like gold and reducing confidence in the US dollar.

Today’s given signal : https://t.me/calendarsignal/16439

Factors Behind Weak US GDP

The US GDP for Q4 grew at 1.3%, below the forecasted 2.1%, marking a slowdown from 2.6% in Q3. The decline was driven by the following key factors:

Weak Consumer Spending:
Consumer spending, which drives over 70% of US GDP, grew only 1.2% compared to 2.3% in Q3. High interest rates and inflation squeezed household budgets, reducing demand for goods and services.
Decline in Business Investment:
Corporate capital expenditures fell by 0.8%, reflecting concerns over future economic uncertainty and rising borrowing costs.
Exports Decline:
US exports dropped 2.5%, pressured by weaker global demand and a strong dollar in earlier months.
Higher Interest Rates:
The Federal Reserve’s tight monetary policy, with rates at 5.25%-5.5%, impacted growth by increasing borrowing costs for businesses and consumers.

Impact on XAUUSD (Gold)

Gold prices rose due to economic uncertainty and a weaker US dollar:

Spot gold (XAUUSD) increased 1.8%, rising.
Gold futures gained 1.6%, closing.

Gold benefits in times of economic weakness as it is a safe-haven asset.

The disappointing US Q4 GDP (1.3%) on December 19, 2024, led to rising gold prices and a weaker US dollar (DXY -0.6%). The slowdown stemmed from weak consumer spending, lower business investment, and declining exports, driving investors toward safe-haven assets like gold.

Previous released data results :

On last GDP Data (27-11-2024) we predicted weak GDP, & as per that we suggest to BUY XAUUSD & as a result, we made a profit of 34 points according to the signal we gave.

Check the previous blog : https://blog.forextrade1.co/expert-analysis-predicting-the-gold-prices-before-us-data-release-today-27-11-2024/

Check last given signal : https://t.me/calendarsignal/16134

Performance : https://t.me/calendarsignal/16152