Make Kitco Your Homepage

Gold prices ignore in-line preliminary Q2 U.S. GDP data

Kitco News

(Kitco News) - The gold market continues to hold steady seeing some technical profit taking as the U.S. economy expanded in line with expectations in the second quarter of 2019

Thursday, the second reading of U.S. Gross Domestic Product showed that the U.S. economy grew 2% between April and June, in line with economist expectations, but down slightly from 2.1% reported in the initial report.

Gold prices seeing little reaction to the economic data. The yellow metal is under some modest selling pressure as its momentum has slowed after hitting a fresh six-year high earlier in the week. December gold futures last traded at $1,548 an ounce, down 0.6% on the  day.

Looking at the components of the report, the U.S. consumer remains a strong pillar of the community; Personal consumption increased in the second quarter to 4.7%, up compared to the initial estimate of 4.3%. Economists expected to see an unchanged reading.

“Never underestimate the power of the US consumer. The worry here though is if the consumer slowed down,” said Adam Button, managing director of

However, business investment continues to remain weak dropping 0.6% in the second quarter, unchanged from the previous estimate. This is the first contraction in business investment since 2016.

Trade also weighed on growth exports declined more than expected, dropping 5.8%, down from the initial forecast of -5.2%. Meanwhile imports rose 0.1%, unchanged from the previous estimate.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.