Gold market sees ongoing selling pressure despite US economic growth of 2.7%
The US Bureau of Economic Analysis has reported solid growth of 2.7% in the second reading of the fourth-quarter Gross Domestic Product, slightly lower than the initial estimate of 2.9%, while personal consumption contributed to the latest downward revision, as it increased by 1.4%.
On the Multi Commodity Exchange (MCX), gold futures began trading at Rs. 55,720.00 per 10 grams, showing a rise of 0.24%. On the other hand, silver futures opened at 64,450.00 per kilogram, with a slight increase of 0.15%.
As of 3:17 pm GMT, spot silver experienced a rise of 0.42% and was trading at $21.59 per ounce. Platinum reached a price of $956.33. On the other hand, Palladium was trading at $1,458.33.
Despite the slightly lower revised economic activity, the gold market is experiencing ongoing selling pressure as the US reported a solid growth in the final months of 2022. The US Bureau of Economic Analysis indicated that the second reading of the fourth-quarter Gross Domestic Product showed a 2.7% growth, down a little from the initial 2.9% estimate, which consensus estimates expected to remain unchanged. The latest economic data has had little impact on the downward trend of the gold market, with April gold futures trading at $1,832.80 an ounce, reflecting a 0.47% drop on the day.
The report mentioned personal consumption as a factor contributing to the latest downward revision, as consumption increased by 1.4%, lower than the initial estimate of 2.1%. The latest GDP report's persistently higher inflation data also appears to be affecting gold prices, with the GDP Price Index for the quarter rising by 3.9%, up from the initial estimate of 3.5%, and core inflation increasing by 4.3%, up from the initial estimate of 3.9%.