Gold prices remain under pressure and the time period is near as the U.S. economy It grew below expectations in the first quarter, according to the latest data from the U.S. Department of Commerce.
A recent economic report said its first reading of the Gross Domestic Product showed a 4% increase in the fourth quarter, which was unexpected. Economists were expecting to see economic growth of about 4.2%. The third quarter saw GDP growth by more than 33%.
The gold market does not see much response to the latest economic data. April futures gold last traded at $ 1,841.70 an ounce, down 0.39% per day.
While the data was way weaker than expected, it is not as surprising to many economists as the U.S. economy. He continues to face the negative effects of the COVID-19 epidemic. It is to be noted that 4.0% annual gains in the fourth quarter’s GDP are largely due to short-term weakness, driven by a combination of withdrawal of funding and a resurgence of coronavirus.
On Wednesday, the Federal Reserve saw little economic growth in its monetary policy statement, released after leaving interest rates unchanged.
It is to be understood that the pace of economic recovery and the employment that has been moderated in recent months, and also the weakness is concentrated in the areas most affected by the epidemic. Katherine Judge, senior economist at CIBC, noted that 4% print in the U.S. GDP remains 2.5% below the pre-epidemic levels. In view of some of the features of the report, human consumption was slightly lower than expected in the fourth quarter, rising by 2.5%. Economists were expecting to see an increase of about 3.1%.
The report also indicated that trade was slowing down growth. In the fourth quarter exports increased by 22.0%; Meanwhile, imports increased by 29.5%.
Although the US economy finished the fourth quarter slower than expected, Ashworth said he still hoped growth could grow by the end of the year.