A confluence of several factors including weaker consumer spending, sliding exports saw fourth quarter US GDP miss estimates of 2.50% growth by a wide margin. At 1.90%, the advance reading of fourth quarter annualized growth was largely bolstered by investment in equipment, intellectual property, and home building. While consumption was still positive, adding significantly to the aggregate growth measure, on the whole, 2016 was the slowest year of growth since 2011.
Weighing particularly heavy on the data private investment falling by -1.50% for the calendar year alongside decelerating private and public expenditure growth. Despite optimism in policy circles about rebounding inflation and unemployment which is trending at the lowest point in years, the dollar remains under pressure as Golden Week begins in China. After falling back below $1200, gold prices remain under pressure as the dollar improves, ticking back below $1190.