Gold Prices Weaker Following 1.4% Rise In Q2 GDP

New York (Sept 29)  Gold prices are losing some ground Thursday in reaction to slightly stronger-than-expected second-quarter gross domestic product numbers.

Thursday the Department of Commerce reported in its final assessment that the U.S. economy grew 1.4% between April and June, up from the second estimate of 1.1%. Economists were expecting to see GDP rise to 1.3%.
 
The report noted that, “the general picture of economic growth remains the same”

The final second quarter estimate is also much higher compared to the first quarter, which showed the economy grew by 0.8% in the first three months of the year.

Ahead of the report gold prices were trading relatively flat on the day. December gold futures last traded at $1,322 an ounce, down 0.13% on the day.

The reported noted a modest improvement in the manufacturing sector as exports grew 1.8% in the second quarter, up from the second estimate of 1.2%. At the same time imports, which is a drag on GDP was little changed at 0.2%.

Consumer spending was relatively unchanged, increasing 4.3% in the second quarter, according to the final estimate. Domestic demand has been the consistent bright spot in the U.S. economy.

The report also noted that relatively stable inflation with the second-quarter price index holding at 2.3%, in line with expectations.

Source: KitcoNews