The dollar rebounds on strong US growth
The US economy grew faster than expected in the third quarter
The US dollar rebounded from a three-month low on Wednesday following data indicating faster-than-expected growth in the third quarter, with Prelim GDP reaching 5.2%
Chinese manufacturing activity faced a continued decline in November for the sixth consecutive month.
Gold prices experienced a slight decline, signaling a temporary pause in their recent rally.
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The dollar rebounded from more than three-month lows on Wednesday, supported by data revealing a faster than-initially expected growth in the U.S. economy for the third quarter.
The US Prelim GDP grew 5.2% vs 5.0% expected and 4.9% previous. The data sparked optimism in the market, raising hopes that the largest economy can steer clear of a recession.
China’s manufacturing PMI
Chinese manufacturing activity experienced a further decline in November for the 6th month this year. Additionally, China’s non-manufacturing PMI also grew less than expected at 50.2 compared with 50.6 in October.
Concerns about a potential new pandemic have also negatively impacted sentiment in China, following a surge in pneumonia infections across the country. Despite the People's Bank of China implementing additional stimulus measures to support the economy, apprehension persists.
Gold prices experienced a slight decline, signaling a pause in the recent rally of the precious metal. Market participants were eagerly awaiting additional signals on U.S. monetary policy, particularly from a crucial inflation reading scheduled for later in the day.
Despite this temporary dip, the prices of gold remained near a seven-month peak achieved earlier in the week. The strong gains in November were propelled by expectations of a less hawkish Federal Reserve, a weakened dollar, and an uptick in safe-haven demand.