Gold prices rose, supported by weak data on economic growth in the United States and month end flows.
The US Commerce Department announced that US economic growth stalled in the second quarter.
According to seasonally adjusted data gross domestic product grew by 1.2% annually in the second quarter. The last reading was well below the average forecast (+ 2.6%). We also add that economic growth for the first quarter was revised downward to + 0.8% from + 1.1%.
The economy expanded by less than 2% for three consecutive quarters. Despite the fact that the recession was over seven years ago, the growth rate has not accelerated since. The average annual growth rate during the current business cycle remains the weakest since 1949.
Weaker-than-expected GDP data call into question the possibility of raising interest rates before the end of this year.
The dollar index recently fell by 1%.
Earlier on Friday, the price of gold rose rapidly after the Bank of Japan announced its intention to buy ETF for 6 trillion yen, whereas previously this amount was 3.3 trillion yen. Investors assumed that the central bank will introduce more extensive measures to support the economy and increase inflation.
The cost of the August gold futures on the COMEX rose to $ 1347.10 per ounce.