The U.S. economy has shown robust growth, with the Bureau of Economic Analysis reporting a 3.0% increase in GDP for the second quarter, up from the previous estimate of 2.8% and significantly higher than the 1.4% growth in Q1. This growth was driven by increased consumer spending, private inventory investment, and nonresidential fixed investment. Despite this positive economic data, gold prices remain relatively stable, with December gold futures trading at $2,543.20 per ounce, a modest 0.21% increase on the day.
Inflation data from the report was mixed. The GDP Price Index rose to 2.5%, up from the initial estimate of 2.3%, while the core Personal Consumption Expenditures (PCE) Price Index increased to 2.8%, slightly below the initial estimate of 2.9%. Consumer spending continued to grow, rising by 2.9% in the second quarter, an increase from the initial reading of 2.0%.
“The robust economic performance in Q2 indicates strength, making a significant rate cut less likely,” he noted.
