Gold futures finished higher Friday after a quarterly reading of the pace of growth of the U.S. economy came in better than expected, but other aspects of the report raised questions about the underlying strength of the economy.
The U.S. economy expanded at a 3.2% annual pace in the first three months of 2019, the government said Friday. The gain was well above forecasts for a 2.3% increase in gross domestic product. The economy grew at a healthy 2.2% rate in the final three months of 2018.
The rise in first-quarter GDP “would seem to make a mockery of claims that the economy is slowing as the fiscal stimulus fades,” said Paul Ashworth, chief U.S. economist at Capital Economics, in a note. However, “net exports added 1.0% point to overall GDP growth, as exports increased by 3.7% annualised and imports contracted by 3.7%. That won’t continue against a backdrop of very weak global trade.”
On Friday, gold for June delivery tacked on $9.10, or 0.7%, to settle at $1,288.80 an ounce. The most-active contract logged a weekly gain of 1%, based on last Thursday’s settlement as major markets were closed at the end of last week in observance of Good Friday.
Source : Marketwatch