Gold prices are slightly lower on Wednesday morning as profit takers cash in on previous days gains. Currently gold is holding above $1200 as continued poor U.S. economic data is released today. Gold last reported a.m. is $1210.50 and silver is $16.70.
According to new government data, the U.S. economy remains at a standstill as the GDP grew between January and March at a annualized rate of 0.2 percent, falling short of the 1 percent hoped for by analysts. The data points to the weakest quarter in a full year.
Global stock markets and the U.S. dollar were broadsided today by the news and the last four days dollar losses have witnessed the second biggest drop in 6 years. “Weaker than expected” forecasts reports show the dollar heading towards its longest slump since mid-2013.
Corporate fixed investment decreased at an annualized pace in the first quarter at 2.5 percent marking the biggest decline since December 2009. Spending in non-residential structures like factories and buildings dropped to its lowest rate in four years at 23.1 percent.
Plunging crude prices are reflecting a weakness in petroleum exploration as companies have slashed budgets attempting to minimize the effects of current profit losses. Spending on wells and mines fell at a 48.7 percent annualized rate in the first three months of 2015 totaling the biggest drop since 2009.
Greece says it will discuss a draft bill of reforms with EU creditors on Thursday in hopes of gaining bailout funds. Speaking on condition of anonymity, one Greek official says “The aim of the negotiations at all levels is the achievement of a mutually beneficial agreement.” “The Greek government is optimistic this will be achieved soon.”
Further inflaming relations with EU creditors is Greek Energy Minister Panagiotis Lafazanis by declaring, “If Berlin, Brussels and the International Monetary Fund believe they will either drag the country and our government to submission, or push us to collapse they are doubly wrong. Neither one nor the other will occur.”
While the lip service is appreciated by himself, Greek citizens aren’t buying the, “we’re tough enough to make it on our own” line. Bank deposits have fallen by almost a fifth since December from 160.0 billion euros to 134 billion by April.
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