Summary:
- US GDP 3.0% vs 3.1% expected
- Initial jobless also misses forecasts but Philly Fed beats
- Gold spikes higher on the release
A batch of data from the US has come in a little on the disappointing side causing a spike higher in Gold and weighing on the US dollar. The headline data came in the form of GDP with the final reading for the 3rd quarter coming in at 3.2% annualised against an expected 3.3% which would have been in line with the prior.
Whilst the latest GDP reading came in below forecasts a 3.2% growth rate remains pretty strong. Source: XTB Macrobond
At the same time as the GDP number there was also the latest employment data and manufacturing index from the US. Initial jobless claims have been strong of late but today’s number saw a pop higher to 245k against an expected 232k and a prior reading of 225k. This was the highest reading in 6 weeks.
There was also the Philadelphia Fed manufacturing PMI which provided the sole positive from the data released. The index rose to 26.2 from 22.7 last time out and this was comfortably above the 21.5 expected.
The latest Philly Fed beat was in contrast to the latest readings in the two more widely viewed manufacturing PMI indicators. Source: XTB Macrobond
Gold can be particularly sensitive to US data releases and there was an immediate reaction evident i the price of the precious metal following today’s with the market spiking higher by around $4.
The immediate reaction in the market to the data showed it to be interpreted as negative for the US with Gold popping higher. Source: xStation
Turning our attention to a daily chart the situation becomes more interesting with the current area perhaps pivotal for price going forward. The region around 1265 was a key support before price broke below it earlier this month and this could now be seen as a potential resistance. In addition the 8 and 21 period EMAs are also nearby and whilst they remain in a bearish orientation for now the market is not far from moving higher and seeing a positive cross.
The current area for Gold could be pivotal going forward. Source: xStation