In a sign that the US economy is rebounding from the slowest growth in years, third quarter gross domestic product signaled that a recovery was hastening, potentially beckoning further rate hikes from the Federal Reserve if momentum persists.
The final reading of third quarter GDP came in at 3.50%, beating the second estimate of 3.20% as soybean exports and personal consumption expenditures increased at a faster pace than anticipated.
Exports in particular rose by 10.00% during the period in spite of the recent strengthening of the US dollar which traditionally would make US goods more expensive on a relative basis. The figure was also bolstered by stronger private investment and heightened government spending. The dollar managed to snap back from earlier losses on the back of the strengthening outlook, pushing gold as low as $1127.64 before rebounding overnight.