Despite some optimism at the start of the year, the U.S. economy saw weaker than expected economic activity in the first quarter of 2020 as the global economy was turned upside down to the COVID-19 Pandemic
Wednesday the first reading of U.S. Gross Domestic Product showed that the U.S. economic growth fell 4.8% in the first quarter. The data were weaker than expected; according to consensus figures, economists were expecting to see a -4% decline in economic activity.
The decline comes after the U.S. economy grew 2.1% in the fourth quarter of 2019.
The gold market is not seeing much movement in initial reaction to the data as prices hover in negative territory. June gold futures last traded at $1,718, down 0.24% on the day.
The weaker than expected data does not come as a major surprise to some market analysts. The U.S. economy ground to a halt last month as 95% of the population were requested to stay at home as federal and state governments closed all non-essential businesses.