GDP: Gold’s Disinflation Plunge

The bigger than expected downward revision in US Q2 GDP to -1.0% from an initial reading of +0.1% mainly resulted from an inventory drawdown of 1.62% (three times as original expected), lower private investments and more negative contribution from net trade. The good news is that personal consumption was revised to 3.1% from 3.0%. The absence of inflation combined with the onset of imported disinflation from the Eurozone and China's weakening currencies lends credence to the selloff in gold.  The metal's shine is further eroded when new record highs in US & European stocks operate in a low-inflation environment. Full charts & analysis

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