Gold Jumps As Investors Are Driven By US GDP Data

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Gold Jumps As Investors Are Driven By US GDP Data

In Asia on Friday morning, gold was higher as investors flocked to the safe-haven asset after troubling U.S. GDP figures. The yellow metal, on the other hand, is about to experience its greatest monthly loss.

The Federal Reserve of the United States is largely expected to raise interest rates substantially when it announces its policy decision next week. Gold, on the other hand, was projected to have its largest monthly percentage decrease since September 2021.

Policymakers at the Federal Reserve have agreed to speed up interest rate hikes in 2022. They have yet to agree on how rapid the pace should be in order to avert an economic downturn.

The price of gold futures increased by 0.87 percent. The growth of the U.S. economy could relieve some of the pressure on the Fed to tighten as forcefully as it has implied, putting downward pressure on gold in recent weeks.

At some time, the freight train known as the U.S. dollar will have to slow down. When it does, that might be good news for gold. Silver rose 0.1 percent, while platinum declined 0.5 percent in other precious metals.

Fears of a Russian supply disruption overshadowed COVID-19 lockdowns in China, the world’s largest crude importer, as oil prices surged for a fourth day on Friday. Global markets are disturbed because of western sanctions on Russia. 

The price of Brent crude futures rises by $1.60. The price of WTI crude in the United States increased by $1.01. Both futures are expected to finish the week higher and register their sixth consecutive monthly gain, boosted by the growing likelihood that Germany would join E.U. members in imposing a Russian oil embargo.

This year, Russian oil output could drop by as much as 17%. Despite the negative effects on its market and growing supply lines, oil prices remain volatile, with China showing no signs of reducing its lockdown measures.

Oil market volatility is expected to persist, with the possibility of more widespread and lengthy lockdowns throughout May and beyond, skewing China’s oil demand risks in the short term.
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