Solid GDP Data Causes Gold to Lose Some Gains
Gold retreated slightly on Thursday after revised data on the GDP of the U.S. for Q2 revealed the economy was more solid than had initially been reported. The report published shows that U.S. GDP exhibited 3.8% growth year-on-year for Q2 of this year, which was higher than the 3.5% that analysts had expected. This GDP data supports those members of the Fed who are hawkish and would prefer to see interest rates maintained at an elevated level for longer. When interest rates are high, demand for gold dips since it is non-yielding and investors opt for other asset classes that…