Gold price sets for breakdown as US economy turns out resilient
- Candlestick & Company
- Sep 7, 2023
- 1 min read
Gold price stabilizes near a six-day low as the appeal for the US Dollar strengthens.
The US economy remains resilient while other nations are going through the consequences of restrictive monetary policy.
Strong demand for the US service sector could allow the Fed to keep doors open for further policy tightening.
Gold price (XAU/USD) consolidates near a six-day low and remains exposed to more falls as investors keep funding the US Dollar due to an infirm global economy. The precious metal fails to capitalize on a widely anticipated unchanged interest rate decision by the Federal Reserve (Fed), which will be announced on September 20. Meanwhile, investors await Q2 US Unit Labor Costs data, which will be published at 12:30 GMT.
With economies like the UK and the Eurozone struggling due to tight monetary policy and high inflationary pressures and China facing deflation risks, the US economy remains resilient. The US economy is expected to avoid recession as inflation starts cooling due to the strict interest rate policy by the Fed, while job growth and consumer spending remain broadly stable.
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