Gold Slightly Lower After US GDP Beats Forecast in Q4

The gold market continues to attract some profit taking, seeing muted reaction following stronger than expected 2016 fourth quarter gross domestic product data.

Thursday, the Department of Commerce said in its final estimate that fourth-quarter U.S. gross domestic product expanded by 2.1% in the fourth quarter, up from the previous estimate of 1.9%, and down from 3.5% growth reported in the third quarter. The data was slightly better than expected as Economists were forecasting growth of 2.0%.

Annual economic growth was unchanged at 1.6%, the report said.

“With this third estimate for the fourth quarter, the general picture of economic growth remains largely the same; personal consumption expenditures (PCE) increased more than previously estimated,” the report said.

Overnight gold prices continued to fall as a result of technical selling as investors continue to take profits after the yellow metal hit a one-month high at the start of the week. Gold is slightly weaker following the data with April Comex contracts last trading at $1,246.60 an ounce, down 0.57% on the day.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza