Daily Gold Update

Source:Dana Samuelson, American Gold Exchange

Austin— Precious metals all moved higher today following the release by the Commerce Department this morning of 2nd quarter U.S. GDP. The U.S. economy grew at 2.6% during the 2nd quarter. Analysts anticipated growth of 2.7%. While the 2nd quarter GDP figure was just shy of estimates, 1st quarter GDP was revised down from 1.4% to 1.2%. The U.S. economy has now expanded at an annualized rate of 1.9% during the first half of 2017.

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased during the 2nd quarter to 2.8%, up from 1.9% during the 1st quarter. Contrarily, wages and salaries decreased from a 1st quarter growth rate of 0.8% down to 0.5% during the 2nd quarter. Inflation also decreased according to the Fed�s preferred inflation gauge, the PCE, from 1.8% in the 1st quarter down to 0.9% in the 2nd quarter.

Diminishing growth rates for wages and inflation, despite a low unemployment rate of 4.4%, caused the dollar to falter today following yesterday�s rebound. The U.S. dollar index fell 0.61% to a new low short-term low of 93.31 which in turn boosted precious metals prices.

North Korea launched a second long-range ICBM this morning, which also contributed to the safe-haven demand for gold today. Today�s missile was apparently a more advanced version of their first based on the range it traveled.

At the Comex close: August gold gained $8.40 to $1,268.40; September silver gained 12 cents, to $16.69; October platinum gained $10.20 to $936.60; and September palladium gained $3.25 to $880.15 an ounce.