COMMODITIES, EQUITIES REACT TO U.S. GDP
Gold rebounded this morning after hitting a three-week low Monday as equities rose. Wall Street performed well Monday, closing at historic highs, which ultimately pressured Precious Metals across the board. “Positioning still seems to be light in Gold so we expect the market to remain contained during the holiday period, but big swings in other markets such as the dollar and crude will exacerbate moves due to the light liquidity,” MKS Group said in a note. The International Monetary Fund reported Russia increased its Gold holdings for the eighth consecutive month in November while Ukraine reduced its Gold reserves for a second month in a row.
According to revised statistics from the U.S. Commerce Department, gross domestic product (GDP) advanced at a 5 percent annual rate from July to September, the largest growth seen in the U.S. since 2003. Consumer spending is expected to soar in 2015 with a healthier job market and lower gas prices improving buying power. “We are the locomotive of growth for the world right now,” Nationwide Insurance chief economist David Berson said. “Fourth-quarter growth is probably going to be more modest” on slowing business investment as plunging oil prices mean less energy-related spending, he said.
At 11:20 a.m. (ET), the APMEX Precious Metals spot prices were:
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