Gold prices are going up, but will finish the week in the red because of good US economic statistics.
Gold is traded at $ 1127.60 per troy ounce compared to $ 1125.31 at the close of trading on Thursday, while US futures for December delivery rose by $ 4.20, to $ 1126.80 for an ounce. In the beginning of the week, the spot price fell 2.6 %, and on Wednesday it fell to a weekly minimum.
Futures are likely to get support at $ 1117.00, the low of Thursday, and resistance at $ 1146.00, Wednesday's high.
The US economy grew by 3.7 % in the second quarter, and not by 2.3 %, as reported in July. Good statistics gives reasons to the Fed to raise interest rates this year, which will reduce the investment attractiveness of gold as an asset, as it won’t generate an interest.
"The question in the next week is if there will still be present the market concerns appeared on August 10, when China devalued its currency. There are left a few weeks until the Fed meeting, and it will also attract a lot of attention," - said a senior manager at Saxo Bank, Ole Hansen.
According to INTL FCStone analyst, Edward Meir, the Fed could raise rates in September, based on GDP data and a report on manufacturing activity and housing market.
"With all the talk about the market turmoil, it is important to note that the Fed usually does not pay attention to events abroad when taking a decision on the rate, and we believe that this time the central bank will do the same," - Meir wrote in a report.
Silver is traded at $ 14.40 per ounce compared to $ 14.48 at the close of trading on Thursday; platinum cost is at $ 997 versus $ 1001 and palladium costs $ 568.50 versus $ 559.50.