JAKARTA – Gold price strengthens from the previous session’s decline at the end of trading Thursday (Friday morning ET), but still entrenched below the psychological 1,900 dollar level, after a disappointing first quarter US gross domestic product (GDP) report this year.
The most active gold contract for June delivery on the Comex division of the New York Exchange, rose 2.6 dollars, or 0.14 percent, to close at 1891.3 dollars an ounce. Gold slumped 15.4 US dollars or 0.81 percent to 1,888.70 US dollars per ounce the day before (27/4/2022).
Gold futures increased 8.1 US dollars, or 0.43 percent, to 1,904.10 dollars on Tuesday (26/4). after dropping 38.30 US dollars or 1.98 percent to 1896.00 US dollars on Monday (25/4), and slumping 13.9 US dollars or 0.71 percent to 1,934.30 US dollars on Friday (22/4). ).
“Gold prices are slightly positive after the negative US GDP figures initially sparked some ideas that maybe the Federal Reserve can’t be as aggressive in tightening monetary policy,” said Kitco senior analyst Jim Wycoff.
“Lately there’s been more downside for gold as the US dollar index hit highs and bond yields rose. The economy remains in fairly good shape and inflation needs to be controlled,” he added.
The US economy unexpectedly contracted in the first quarter amid a resurgence in COVID-19 cases and a decline in government funding for pandemic relief, while domestic demand remained strong. Meanwhile, weekly jobless claims fell by 5,000 to 180,000.
