gold 10 minutes
The daily chart of gold has had a nice turnaround. It dropped about $15 after a round of USD buying on the back of good GDP data, but has since regained all that and more.
The bids came in just before $2,500, and now the price is on the verge of hitting a record close. The daily record of $2,531 is also just a few steps away.
Fitch today affirmed the US’s AA+ credit rating but also highlighted a deficit expected to reach 124% of GDP. The agency forecasts a deficit of 8.1% of GDP in 2024 followed by 7.7% in 2025 and 2026. These are staggering numbers that highlight the downside risks to the US dollar and growth. They are clearly unsustainable even in a period of 3% GDP growth.
Earlier this week, I made a very simple case for buying gold but I would caution that September is a weak season for gold.