FxNews—Gold prices stayed strong at $2,780 per ounce on Thursday, maintaining their peak due to the rising demand for safe investments amidst the uncertainty of the US elections and global political tensions.
Additionally, the markets have been analyzing recent economic figures from the US, which revealed a 2.8% annual GDP growth in the third quarter—just shy of the anticipated 3%.
Rising Sales Signal Strong US Consumer Confidence
On the other hand, significant increases in personal spending and sales demonstrate the ongoing strength of American consumers, continuing to push inflation concerns higher, as evidenced by the unexpectedly high core PCE price index from the past quarter.
Investors now look forward to the Federal Reserve possibly lowering interest rates at its next gathering. This move would favor gold since lower rates diminish the lost potential earnings from holding gold, which does not accrue interest.
Attention is now turned to the upcoming PCE figures and employment data, which are expected to be released on Thursday and Friday.