Gold rises after US GDP comes in much lower than expected and durable goods fall off a cliff
So for all that stimulus and that money printing in the US, GDP in just come in much lower than expected.
The consensus was for a GDP print of 1.7%. Instead the number came in at 1.25%. So much for that ‘recovery’ we hear talked about so much but see so little of.
Add into the mix that durable goods fell the most since the recession and all indicators point to a US economy heading back into a recession that it never really left:
New orders for long-lasting U.S. manufactured goods in August fell by the most in 3-1/2 years, pointing to a sharp slowdown in factory activity even as a gauge of planned business spending rebounded.
The Commerce Department said on Thursday durable goods orders dived 13.2 percent, the largest drop since January 2009, when the economy was in the throes of a recession. Orders for July were revised down to show a 3.3 percent increase instead of the previously reported 4.1 percent gain.
The phrase ‘fall off a cliff is often over used but in this case we think it’s fully justified:
And gold? It does what it does best on days of bad economic data – shoots up:
Gold $ (10 min chart):
- Gold stays strong as the dollar rises and equities fall
- As UK Q2 GDP falls off a cliff, can will call it a depression yet?
- Gold price drifts lower ahead of the Fed’s decision
- As UK producer prices come in higher than expected will next week’s CPI follow suit?
- Gold price drifts lower only to ‘pop’ back towards $1650 as the bull/bear attrition battle rages on
Link to this article: : http://www.goldmadesimplenews.com/gold/gold-rises-after-us-gdp-comes-in-much-lower-than-expected-and-durable-goods-fall-off-a-cliff-8154/