Gold firmed last night in a range of $1230.10 - $1238.60, largely fueled by further losses in global equities.
After the bell yesterday afternoon, worse than expected revenues from Amazon and Alphabet helped initiate another round of selling. The NIKKEI fell 0.4%, the SCI was off 0.2%,
European markets were off from 1.5% to 2.4%, and S&P futures were -1.2%.
Some buy stops were tripped over $1232-35 (6 tops, 7/23, 7/25, 7/26, 10/15, 10/16, and 10/24 highs) on the way to its $1238.60 high, but resistance at $1239-40 (double top, 10/23 and 10/25 highs) held once again.
A modest dip in the dollar (DX to 96.55) from a move up in the euro ($1.1359 - $1.1383 – stronger German GfK) also contributed to gold’s strength.
During later European hours, however, the DX climbed to 96.82 – a fresh 2-month high - and knocked gold back to $1232 (lower end of prior resistance held).
The dollar was lifted by weakness in the euro ($1.1383 - $1.1335 – two month low) and the pound ($1.2826 - $1.2777 – two month low) from comments from UK Brexit Secretary Raab blaming the EU for lack of a Brexit deal.
At 8:30 AM, the much awaited US Q3 GDP report was better than expected (3.5% vs. exp. 3.3%), with the Personal Consumption component much stronger than anticipated (4% vs. exp. 3.2%).
The inflation gauges, however, were lower than expected (GDP Price Index 1.7% vs. exp. 2.1%, Core PCE 1.6% vs. exp. 1.8%).
The data continued to take down the probabilities of future 25 bp Fed rate hikes as follows, which was also aided by some not so hawkish commentary from the usually very hawkish Fed’s Mester (rate hikes are based on economic data, not...