Gold Hits Daily High After Modest Dip Following U.S. GDP

(Kitco News) – Gold market bulls have quickly brushed aside a slightly better-than-expected U.S. gross domestic product report Friday morning and have pushed prices moderately up and to new daily highs. The second-quarter GDP came in at up 2.1% versus expectations of up 2.0%, year-on-year. While today’s GDP report falls barely into the camp of the U.S. monetary policy hawks, who don’t want to see interest rates lowered, it’s doubtful the GDP data will change the minds of Federal Reserve officials who meet next week to discuss monetary policy. The FOMC is still expected on Wednesday to ease monetary policy with an interest rate cut. The U.S. dollar index rallied to a new high for the year following the GDP report, but again, the gold bulls ignored the development. August gold was last up $7.60 at $1,422.10.

By Jim Wyckoff
For Kitco News


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