Gold Balanced by Weak Economic Data, Physical Buying

Gold was flat at $1,316.70 per ounce on Wednesday, according to Reuters. Earlier in the day’s trading, the metal hit a low of $1,310.30 per ounce, the news source reported. Gold prices rebounded after U.S. growth data released today turned out to be weaker than analysts had expected, putting pressure on the dollar. However, physical buying decreased.

“The market needed a big washout on the upside to get it back to a semblance of normality,” David Govett, head of precious metals at Marex Spectron, told Reuters. “Now it has done enough, and there is no particular reason to buy it up here.”

U.S. gold futures for August delivery fell $2.60 an ounce to $1,318.70.