U.S GDP Q3 2012 Grew by 2.7%

The bureau of economic analysis published today November 29th its second estimate of the growth rate of the U.S. Gross Domestic Product for the third quarter of 2012 and a first estimate for corporate profits. According to the recent report, U.S output of goods and services growth rate reached an annual growth rate was 2.7% in Q3 2012, which is higher than some had anticipated.

According to the recent report, the real U.S GDP growth rate for the third quarter of 2012 (second estimate) was revised up from the preliminary update of 2% growth to an annual rate of 2.7%. This is figure is higher than many analysts had expected. In the first quarter of 2012 the GDP expanded by 2%; the real U.S GDP for Q2 2012 rose by 1.3%; thus the growth rate in the Q3 2012 was higher than the GDP in the past couple of quarters.

The chart below presents the developments of the real U.S. GDP (in annual rates) growth rate between 2009 and 2012.  As seen, the recent rise in the real GDP means the growth rate in the third quarter was the highest rate since the last quarter in 2011.

U.S. GDP update 2009-2012 US GDP third Q2012 (percent) November 2012

This higher than expected growth rate should positively affect prices of commodities but this news may also lowers the odds of the Fed intervening again  in the financial markets, which could pull down precious metals. Therefore, this report could affect gold and silver from different directions.

The report also showed a rise in corporate profits from $21.8 billion in the second quarter to $67.3 billion in the third quarter.

Currently, the U.S stock markets are increasing along with other major commodities prices: major energy commodities prices including crude oil prices are currently hiking; gold and silver are also trading up; the U.S dollar is depreciating against major currencies including Euro, Japanese Yen and British Pound.

Nymex (WTI) crude oil price, short term future (short term 2012 delivery) is traded sharply up by 2.32%, at $88.53 per barrel as of 14:46*.

Gold price, short term futures (short term 2012 delivery) is traded at $1,728.1 per t oz. a $9.1 increase as of 14:46*.

Euros to USD is currently traded slightly down at 1.2998 as of 14:46*.

(* GMT)

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