While the markets are cautious this week due to the looming US election, it’s a good thing if you want to buy as there is now a window to buy open if you move fast. One of the most notable pieces of data which support this opportune moment to invest is the surprising report from the U.S. Bureau of Economic Analysis (BEA) which yesterday (Thursday) released the GDP figures for Q3. According to those numbers, the US economy grew 33.1% against all odds in the period July-September.
This increase comes on the back of a 31.4% loss the previous quarter, something the BEA says was achieved thanks to the resumption of activities postponed at the onset of the pandemic and the wider reopening of businesses.
In its analysis, the BEA said, “The increase in real GDP reflected increases in personal consumption expenditures (PCE), private inventory investment, exports, nonresidential fixed investment, and residential fixed investment that were partly offset by decreases in federal government spending (reflecting fewer fees paid to administer the Paycheck Protection Program loans) and state and local government spending. Imports, which are a subtraction in the calculation of GDP, increased.”
Why is this good news if you’re ready to invest? The unexpected recovery gave the US dollar a much needed boost of confidence, creating a strong opportunity to buy gold in the dip before the precious metal rebounds on new stimulus measures and election fears. Buy now.