Gold Rebounds Sharply Following Weak US GDP Data

Key Facts

In a move reflecting market sensitivity to macroeconomic indicators, gold prices rebounded sharply following the release of weaker-than-expected US GDP data. The precious metal found strong technical support at its 200-day moving average, triggering a decisive bullish reversal. According to reports, the disappointing growth figures reduced immediate pressure on the Fed for aggressive monetary tightening, lowering the opportunity cost for non-yielding assets.

This rebound coincides with mixed global economic signals, as German GDP grew by 0.3% QoQ per market data on May 22, 2026, while UK retail sales slumped by 1.3% in the same period. Furthermore, US consumer sentiment via the Michigan index fell to 44.8, missing the 48.2 forecast, which weakened the dollar's momentum and supported gold's safe-haven appeal. These combined factors have reinforced gold's position amid cooling growth expectations in major economies.

Traders should closely monitor gold's ability to maintain its momentum above the 200-day moving average as a key technical floor. Looking ahead, the upcoming US CB Consumer Confidence data, which recently printed at 93.1, will be a primary catalyst for the XAU/USD pair. Any further signs of consumer weakness could provide additional tailwinds for the metal as markets recalibrate their expectations for interest rate paths.