Gold Prices Remain Down As U.S. GDP Grows 4.2% In Q2
(Kitco News)- The goldmarket remain under pressure as momentum in the U.S. economy pushed higher inthe second quarter.
Wednesday,the second reading of second-quarter Gross Domestic Product showed the U.S.economy grew 4.2%. The data was slightly stronger than expected as consensusforecasts were calling for growth of 4%.
Goldprices were in negative territory ahead of the report, weighed down by astronger U.S. dollar. However, the yellow metal is seeing modest selling pressure in initial reaction tothe data. December gold futures last traded at $1,209.20 an ounce, down 0.44%on the day.
Accordingto some economists, the data showed continued broad-based strength in the U.S.economy. In the report's second reading, personal consumption increased 3.8%, atick lower from the previous reading of 3.9%.
At the sametime business investment increased 8.5%, up from the previous estimate of 7.3%.
Exports,which boost economic activity increased 9.1%, down slightly from the initialestimate of 9.3%; however, imports, which is a drag on economic growth fell0.4% in the second quarter, down from the previous estimate of an increase of0.5%.
For thegold market, which is seen as a traditional inflation hedge, price pressurewere in line with expectations. Core Personal Consumption Expenditures Index increased2.0%, unchanged from the initial estimate.
By Neils ChristensenFor Kitco News
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