As investors weigh conflicting economic data and the prospects for a Fed pivot, precious metals markets are quietly basing out.
This week gold made a small move to the upside before pulling back here today. As of this Friday recording the monetary metal is registering a weekly loss now of 0.8% to bring spot prices to $1,651 per ounce.
Turning to the white metals, silver is down by a slight 0.7% for the week to trade at $19.47 an ounce. Platinum is outperforming with a 0.5% advance since last Friday’s close to come in at $955. And finally, palladium prices are off a little over $100 or 5.3% this week to trade at $1,974 per ounce.
Thursday’s Gross Domestic Product report showed the economy growing at a better than expected 2.6% annual rate in the third quarter. That’s a major improvement from the negative GDP growth seen during the first two quarters.
The Biden administration is trying to spin the news as a sign of a resilient economy – just as they have been touting the recent $1.6 trillion budget deficit as a huge success when compared to the federal government’s $3 trillion deficit in the prior fiscal year.
However, skeptics point to some troubling indicators that suggest not all is well.
For one thing, rising consumer prices continue to outpace wage growth. As a result, consumer spending remains depressed and is failing to confirm the reported 2.6% gain in GDP. Much of that superficial economic growth rise came as a result of trade deficit narrowing amid an unusually strong Federal Reserve note on foreign exchange markets.