(Kitco News) - The gold market is holding its gains above $2,200 per ounce after the latest data showed the U.S. economy performing far better than expected in the final three months of 2023.
The final estimate of fourth-quarter Gross Domestic Product showed that the U.S. economy expanded by 3.4%, the Bureau of Economic Analysis (BEA) announced Thursday. The data was higher than expected, as economists were looking for an unchanged reading of 3.2%.
“The increase in the fourth quarter primarily reflected increases in consumer spending, state and local government spending, exports, nonresidential fixed investment, federal government spending, and residential fixed investment that were partly offset by a decrease in private inventory investment,” the report said. “Imports, which are a subtraction in the calculation of GDP, increased.”
The gold market seems unphased by the better-than-expected GDP data as it continues to hold its earlier gains. Spot gold last traded at $2,209.16 per ounce, up 0.65% on the day, after rising above the $2,200 level around 6:20 am EST.
The BEA noted that real consumer spending rose 3.3% in the fourth quarter, significantly higher than the previous estimate of 3.0%, and it continues to drive the U.S. economy.
Not only did growth and spending rise beyond economists’ forecasts, but the report noted an unexpected decrease in inflation. The report said that the core Personal Consumption Expenditures Price Index rose 2.0% in the fourth quarter, down from the previous estimate of 2.1%
