Weaker US GDP data lifts gold for third day in a row

Gold rises whilst platinum sees biggest monthly gain since July 2013

Bullion.Directory precious metals analysis 28 February, 2015
By Harley Salt
Co-founder, Director of Sales Trading at Bullion Index

Gold ended the session on Friday up US$4.50 to US$1213.70 after reaching an intraday high of US$1219.20. Gold was helped by GDP data in the US that came in below expectation, this saw the US dollar drop and gold continue with its recent gains.

Weaker than expected US GDP data is sign that US economy is softer than what a lot of market observers have been suggesting.

We see this as another sign interest rates will not be moving within the next 6 months. The Federal Reserve policy makers are set to meet 17th and 18th March so gold traders will be looking to position themselves ahead of this key date.

Following an 8% gain in January, gold ended February 5% lower, its largest monthly fall since September 2014.

Silver ended Friday flat at US$16.57.

Platinum prices ended the week on a high despite recent concerns of over supply as South Africa increases supply, South Africa is the world’s biggest supplier of platinum.

Platinum ended the session up US$12 to US$1184, we remain confident platinum prices will continue to improve as QE in Europe kicks in and boosts demand.

Platinum added 6% for February, its biggest monthly gain since July 2013.

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