Gold climbs to the highs of the day nears new record

August 29, 2024 at 06:30PM
There has been a nice turnaround on the intraday gold chart. It fell about $15 follow a round of USD buying on good GDP data but has since recouped all of that and more.

Bids emerged just before $2500 and it’s now in-line for a record close. The intraday record of $2531 is also within striking distance.

Fitch today affirmed the USA’s credit rating at AA+ but also highlighted a deficit that’s on track to hit 124% of GDP. They forecast a deficit of 8.1% of GDP in 2024 followed by 7.7% in 2025 and 2026. Those are eye-watering numbers that highlight downside risks to both the US dollar and to growth. It’s clearly unsustainable even in a period of 3% GDP growth.

Earlier this week I made: The very simple case for buying gold but would warn that September seasonals for gold are poor.

This article was written by Adam Button at www.forexlive.com.

Gold climbs to the highs of the day nears new record