The U.S. Economy demonstrates unexpected strength in Q2 2024
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The Bureau of Economic Analysis (BEA) released its advance estimate of second-quarter GDP growth, revealing unexpected strength in the U.S. economy with a growth rate of 2.8%, surpassing economists' predictions of 2%. The report highlighted contributions from both the services and goods sectors, driving consumer spending upward. The stronger-than-anticipated economic performance may lead to a reconsideration of the Federal Reserve's timeline for normalizing interest rates. As a result, the gold market experienced a sell-off, with the most active August gold contract declining by 1.42%. Attention now shifts to the upcoming Personal Consumption Expenditures (PCE) inflation index for June, which is expected to show a slight increase in the monthly core PCE but a modest decrease in inflation on an annual basis. The report holds significance as it is the Federal Reserve's preferred measure of inflation. If core inflation continues to cool, it could provide bullish tailwinds for gold prices.

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https://www.kitco.com/opinion/2024-07-25/us-economy-demonstrates-unexpected-strength-q2-2024