The bureau of economic analysis published today its advance estimate of U.S. GDP 2011 second quarter:
According to the report, the growth rate of the real US GDP 2011 in the second quarter of 2011 reached 1.3%; according to the report, after the real US GDP grew by 0.4% during in the first quarter of 2011.
This growth rate is a bit below expectations and could further strengthen precious metal’s prices.
The rise in the US GDP 2011 Q2 was stem mainly from the increase in exports, nonresidential fixed investments, and federal government spending.
The acceleration in the growth rate in US GDP from Q1 to Q2 was due to the acceleration in nonresidential fixed investments and federal government spending, but they were offset by sharp deceleration in personal consumption expenditures. I.e. the consumption declined while non-household investments grew. The increase in nonresidential fixed investments could have been driven by the Federal Reserve’s stimulus plan that provided credit to businesses.
Canadian GDP fell in May by 0.3%
The Canadian GDP was also published today vis-à-vis May 2011; according to the report, the GDP fell by 0.3% in May compared to April 2011. Furthermore, oil and gas extraction declined by 4.2% as wildfires in Northern Alberta and maintenance shutdowns caused a reduction in production. This might be the driving force for today’s depreciation of Canadian dollar against US dollar, and consequently drive crude oil prices down.
Current Nymex crude oil price, short term futures (August 2011 delivery) is traded down by 2.32%, at $95.18 per barrel as of 14:17*.
Current gold price, short term futures (August 2011 delivery) is traded at $ 1,625.30 per t oz. a $9.1 increase or 0.56%, as of 14:04*.
Euros to USD is currently traded up at 1.4340 a 0.0398% increase as of 14:15*.
The USD/CAD is currently traded up at 0.9583, an increase of 0.9491%.
For more on this subject:
- US inflation fell by 0.2% in June – July 15th
- US Federal deficit declined to $43 billion in June
- Weekly outlook for July 25-29