(Kitco News) - Gold continues to struggle to attract safe-haven interest, even as data shows the U.S. economy began 2025 on a weaker-than-expected note, with consumer spending continuing to decline.
The final reading of the U.S. first-quarter Gross Domestic Product revealed a 0.5% contraction, a downward revision from the second estimate, which showed a 0.2% decline. Economists had expected the figure to remain unchanged, according to consensus estimates.
“Real GDP was revised down 0.3 percentage point from the second estimate, primarily reflecting downward revisions to consumer spending and exports, partly offset by a downward revision to imports,” the report stated.
Despite the disappointing economic data, the gold market is showing little reaction. Spot gold last traded at $3,331.58 an ounce, nearly unchanged on the day.
While the weaker-than-expected economic growth is notable, some economists are likely to dismiss the report as outdated. Additionally, a sharp increase in imports during the first quarter—driven by companies stockpiling goods ahead of President Donald Trump’s trade war—continues to distort the data.
Nonetheless, economists point to growing concerns within the economy. The updated figures show that U.S. consumer spending rose by only 0.5% during the first three months of the year, down from the previous estimate of 1.2%.
