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.
