Gold recovers after the release of the second estimate for US Q1 GDP data showed the economy expanded less than previously anticipated.
A slowing economy reduces inflation and interest-rate expectations, supporting non-yielding Gold.
Yet Gold remains technically vulnerable after a breakout from the Bear Flag continuation pattern.
Gold (XAU/USD) trades flat in the $2,340s on Friday, pausing in its labored recovery from Thursday’s three-week trough about $20 lower.
The recovery came after the release of weaker US growth data, which suggested inflation will remain contained and interest rates are more likely to come down. As a non-yielding asset, the expectation of lower interest rates is a positive for Gold.
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