Gold Takes Hit as US Economy's Slow Growth Triggers Interest Rate Hike

The US economy saw some positive growth in Q2, expanding by 1.5%, but this has led to profit-taking in gold and silver as the Federal Reserve remains on track to raise interest rates.

The GDP Price Index rose 6.4% in Q2, up from the initial reading of 6.2%. However, consumer price pressures remained relatively benign last month with core PCE increasing 0.2% in July, up from June's increase of 0.1%.

Gold has seen renewed selling pressure following the data release, but it is still holding above $4,600 per ounce. Spot gold last traded at $4,623.50 an ounce, down 0.75% on the day.