The knee-jerk market reaction to today’s unexpected contraction in fourth-quarter U.S. GDP was selling. Risk assets dropped immediately on the release, and gold, Treasuries, and the U.S. dollar spiked higher.
Now, risk assets are recovering their losses, and bonds and dollars are going back down.
Gold, however, keeps going higher. It topped out at $1682 and is trading just above $1680 right now. It was trading around $1665 before the GDP announcement at 8:30 AM.
Now, it’s up 1.1 per cent on the day after struggling in the past few sessions (click to enlarge):
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