The bureau of economic analysis published today December 20th its final estimate of the growth rate of the U.S. Gross Domestic Product for the third quarter of 2012 and a third estimate for corporate profits. According to the recent update, U.S output of goods and services growth rate was revised up to an annual growth rate of 3.1% in Q3 2012, which was higher than many had expected. On the other hand, some analysts expect the fourth quarter won’t rise as the third quarter did.
According to the recent update, the real U.S GDP growth rate for the third quarter of 2012 (third estimate) was revised up from the second update of 2.7% growth to an annual rate of 3.1%. This figure is higher than many analysts had expected. In the first quarter of 2012 the GDP grew by 2%; the real U.S GDP for Q2 2012 expanded by 1.3%; thus the growth rate in the Q3 2012 was higher than the GDP in recent quarters.
The chart below shows 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 2010.
This higher than expected growth rate may pull down the prices of gold and silver as it lowers the demand for safe haven investments. Note: as the year is winding down and the holidays are around the corner the volatility of precious metals might rise in certain days, such as today, due to the low volume trading.
The report also showed a rise in corporate profits from $21.8 billion in the second quarter to $45.7 billion in the third quarter – this figure, however, is lower than in the previous estimate for the third quarter.
Currently, the U.S stock markets are little changed, while some major commodities are traded down: major energy commodities prices including crude oil prices are currently slightly falling; gold and silver are sharply trading down; the U.S dollar is nearly unchanged against major currencies including Euro, Japanese Yen and British Pound.
Nymex (WTI) crude oil price(short term 2012 delivery) is traded slightly down by 0.22%, at $89.78 per barrel as of 17:07*.
Gold price (short term 2012 delivery) is traded at $1,639.5 per t oz. a $28.6 decrease as of 17:13*.
Euros to USDis currently traded slightly down at 1.3227 as of 17:13*.
(* GMT)
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