U.S. economic growth measured by the Real Gross Domestic Product (GDP) expanded by 2.7% in the fourth quarter on a yearly basis, the U.S. Bureau of Economic Analysis (BEA) second estimate showed. This came in below market expectations of an annualized growth rate of 2.9%.
According to the BEA, today’s reading represents a downside revision from the initial GDP figures, mainly because of the downward revision in consumer spending.
However, the inflation in the U.S. measured by the core Personal Consumption Expenditure (PCE) rose to 4.3%, which came in more than the market expectations of 3.9%.
It is worth mentioning that the core PCE measures the changes in the prices of goods and services purchased by citizens for the purpose of consumption, excluding food and energy.
The US has also released today its weekly initial jobless claims that signaled a dip to 192,000 in the week ending February 18, according to the US Department of Labor (DOL). This was 3,000 down from 195,000 applications a week before and defying analysts’ forecasts of a rise to 200,000.
As of 17:15 GMT, spot gold prices were 0.06% down at $1825 an ounce, noting that gold dropped directly after the news mentioned above to a hit low of $1817 an ounce, then recovered but faced strong resistance at $1830.