U.S. Q3 GDP beats expectations, gold price ticks down from daily highs
(Kitco News) The U.S. economy grew more than expected in the third quarter, the U.S. Bureau of Economic Analysis reported on Wednesday.
The second estimate showed that the U.S. Q3 GDP rose 2.9% versus markets’ expectations of a 2.7% increase. This comes after two negative readings of -1.6% and -0.6% in Q1 and Q2, respectively.
“The second estimate primarily reflected upward revisions to consumer spending and nonresidential fixed investment that were partly offset by a downward revision to private inventory investment. Imports, which are a subtraction in the calculation of GDP, decreased more than previously estimated,” the report said.
Gold price fell from daily highs, paring back some early-morning gains following the data release. February Comex gold futures last traded at $1,770.60, up $6.80 on the day after hitting a daily high of $1,779.
On the inflation front, the PCE price index was revised for Q3 to 4.3% from 4.2% after Q2’s advance of 7.3%. Core PCE, which strips out volatile food and energy prices and is the Federal Reserve’s preferred inflation metric, was revised to 4.6% from 4.5% compared to an increase of 4.7% posted in the prior quarter.
After all the data releases this morning, including the ADP nonfarm number, all eyes are on Federal Reserve Chair Jerome Powell this afternoon as he is scheduled to speak on the topic of ‘Economic Outlook, Inflation, and the Labor Market’ at the Brookings Institution.