Gold See Further Upside, Reaching New Six-Month Highs

Extending a recent upward trend, the price of gold moved higher during trading on Wednesday, reaching its highest levels in over six months.

After moving sharply higher in the previous session, gold for December delivery climbed $7.10 or 0.4 percent to $2047.10 an ounce. The more active gold for February delivery contract rose $6.90 or 0.3 percent to $2,057.50 an ounce.

The previous metal continued to benefit from optimism the Federal Reserve is done raising interest rates following yesterday’s remarks by Federal Reserve Governor Christopher Waller.

Waller said he is “increasingly confident that policy is currently well positioned to slow the economy and get inflation back to 2 percent.”

Traders have seemingly ignored comments from Fed Governor Michelle W. Bowman, who said she expects further rate hikes will be needed.

On the U.S. economic front, revised data released by the Commerce Department showed the U.S. economy grew faster than previously estimated in the third quarter of 2023.

The Commerce Department said the jump by real gross domestic product in the third quarter was upwardly revised to 5.2 percent from the previously reported 4.9 percent. Economists had expected the pace of growth to be upwardly revised to 5.0 percent.

The faster than previously estimated growth reflected upward revisions to non-residential fixed investment and state and local government spending that were partly offset by a downward revision to consumer spending.

Meanwhile, the Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, said economic activity has slowed since the previous report.

The Fed said four districts reported modest growth, two indicated conditions were flat to slightly down, and six noted slight declines in activity.

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