(Kitco News) - The gold market is holding near session highs seeing little movement as the U.S. economy appears to be fairing slightly better than expected in the second quarter, even as the nation’s Gross Domestic Product remained in contraction territory.
Thursday, The Commerce Department said in its preliminary reading that U.S. GDP fell 0.6% in the second quarter, beating market expectations for a contraction of 0.7%. Economic activity has also improved from the first estimate, which showed a negative reading of 0.9%.
The gold market is not paying much attention to the latest economic data as it is seeing some solid buying momentum. December gold futures last traded at $1,771.60 an ounce, up 0.57% on the day.
Looking at some of the components of GDP, the report said that personal consumption improved in the second quarter, rising 1.5%, up from the initial estimate of 1.1%.
Positive for gold prices, the report noted that inflation remains at an elevated level with core PCE holding steady at 4.4%.
However, the headline quarterly GDP Price Index rose 8.9%, up from the previous reading at 8.7%. Economist were expecting to see an unchanged reading.
