Spot Gold Price Jumps on Lower GDP
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August gold futures rose $18.80, or 2%, to $953.70 an ounce on the Comex division of the New York Mercantile Exchange. It rose as high as $958.10 earlier but also fell to $932. Gold rose 2.8% in July.
U.S. gross domestic product fell at a 1% annualized rate in the second quarter, smaller than economists had expected, the Commerce Department reported. The dollar remained lower against most of its rivals after the GDP data. The GDP contraction in the second quarter, although smaller than expected, was the fourth straight quarter with a contraction. This has never happened before since records began in 1947.
James Moore, an analyst said: “Gold is likely to reflect the skittish mood in equities and currencies over the next few weeks, as thinner summer-holiday markets react to the changing economic picture and knock-on effect this has on investor risk appetite. The metal will consolidate in a broad band between $925 and $965 an ounce, although it’s at most risk to a deep correction in the short term.”
I see gold as a competing transnational currency with the fiats. In the future I see the lefts in gold or silver acting as a backing for a system of payment globally. The beginnings of which are starting already with gold backed debit cards etc.
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Gold & Silver are real money, the U.S. $ is a fiat currency that is on it’s way to collapse, Gold will hit 1200.00 in the near future, only because the U.S $ will take a dive soon
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