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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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.
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Sign InThis 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.
Update: Spot silver prices also moved higher late Thursday as the U.S. dollar continued to soften. Rising geopolitical risks in the Strait of Hormuz involving the U.S. and Iran have further bolstered safe-haven demand, offsetting inflation pressures tied to these regional tensions.