Gold futures edge down ahead of American Q3 GDP
On Friday, gold prices dropped during European trade, as market participants looked ahead to the publication of the American third quarter GDP and its probable impact on Fed monetary policy.
In New York, December delivery gold futures sagged 0.11%, trading at $1,268.15 per troy ounce.
American is expected to publish preliminary data on third quarter GDP soon on Friday. The reading is supposed to demonstrate a considerable strengthening from the second quarter’s 1.4% surge to a 2.5% expansion.
Fed officials have stressed that interest rates could go up in December if the American economy remains on track.
The near-term outlook for gold is still cloudy as a recent string of upbeat American economic data combined with quite hawkish remarks from major Fed officials heightened hopes for an interest rate lift before the end of 2016.
The Fed’s next gathering will take place in November, but a rate lift ahead of the presidential election is seen as unreal.