The gold market continues to consolidate above $2,000 an ounce and is seeing some modest bullish momentum as the U.S. economy ended the third quarter on a slightly sour note.
Thursday, the Bureau of Economic Analysis said the third and final reading of third-quarter GDP showed that the economy grew 4.9% between July and September, up from the previous estimate of 5.2%.
"The update primarily reflected a downward revision to consumer spending," the report said. "The increase in real GDP reflected increases in consumer spending, private inventory investment, exports, state and local government spending, federal government spending, residential fixed investment, and nonresidential fixed investment.
Activity was slightly weaker than expected as consensus forecasts were looking for GDP to hold steady at 5.2%. Although the data missed expectations, economists note that growth remains well above trend in the third quarter.
The gold market is seeing a little renewed buying in its initial reaction to the disappointing data. Spot gold last traded at $$2,039.20 an ounce, up 0.38% on the day.
While the data missed expectations, most market analysts note that markets are now focused on how the economy evolves in the first quarter of 2024.
Looking at the components of the latest GDP report, consumer spending in the third quarter rose 3.1%, down from the previous estimate of 3.6%.
At the same time, inflation pressures continue to ease. The report said the core Personal Consumption Expenditures Index rose 3.3%, down from the previous estimate of 3.5%.
