The Q4 US GDP matched expectations of 2.1% annualized growth but the details of the report are weak. Real consumer spending increased by 1.8% (3.2% in Q3) whereas core PCE (a well tracked inflation measure by the Fed) slowed down from 2.1 to just 1.3%. That’s not the best news for the US dollar, although the market reaction is limited. The data means that investors will be watching tomorrows PCE inflation data for January (1:30pm GMT).
Weak price pressure equals more dovish Fed and that could be beneficial for precious metals. Silver is recouping recent losses today. Source: xStation5
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