Gold is Going Back Up After 2Q GDP Growth Slows and Dow Jones Falls

The spot price for Gold is trading above $1,175, which is the high for the week. Gold price were declining since the end of June. Today there are signs that the down trend might be reversing.

The Dow Jones Industrial Index showed that stocks prices fell today after the US government announces that the GDP was slower than expected. The GDP economic growth is the lowest in a year. The GDP growth came out to 2.4%, while it was expected to be GDP 3.7% based on the projected growth published earlier this year.

The Wallstreet Journal comments on the GDP, that companies cut inventory levels sharply during the recession, reducing GDP because businesses were depleting stockpiles they already had on hand rather than producing more goods.

The Dow Jones feel over 50 points in early Friday trading, but recovered most of it during the day. The Nasdaq and the S&P 500 behaved in a similar way: In the early trading hours they were deep in the valley, while they were able to recover ground through out the day. Overall stocks look a little weak.

All this seems to be enough fire to rekindle the buying interest for Gold. As the price chart form today shows Gold opened with $1,168.20 and advanced steadily to $1,177.60 as of this writing.