Gold stays strong despite mixed economic data, and more lithium producers announce spending halts

Three pieces of economic news came out this week: housing, GDP and jobless claims. 

On Thursday, mining audiences manager Michael McCrae hosted Kitco Roundtable. 

Starting the strong news, The U.S. economy continues to defy the odds, as the nation’s Gross Domestic Product (GDP) experienced solid growth in the second quarter. However, despite this positive economic data, gold prices remain largely unaffected, with the market continuing to consolidate near record levels.

On Thursday, the Bureau of Economic Analysis reported that the preliminary reading of second-quarter GDP showed the economy grew by 3.0% between April and June, up from the initial estimate of 2.8%. This represents an increase from the 1.4% growth reported in the first quarter.

Housing data was less strong. 

The U.S. housing sector can’t find any consistent momentum as few Americans are looking to enter the housing market even as the Federal Reserve prepares to lower interest rates.

The U.S. pending home sales index dropped 5.5% in July, the NAR announced Thursday, more than unwinding June’s 4.8% increase. With a reading of 70.2, the index has dropped to its lowest level since the NAR first produced it back in 2001.

And lastly, Americans filing new claims for unemployment benefits last week was lower than forecasted.

Initial claims for state unemployment benefits fell to a seasonally adjusted 231,000 for the week ending August 24, the Labor Department announced on Thursday. The number was lower than expectations. 

Ganfeng Lithium reported a H1 2024 loss of ~$107M and said it would be delaying spending on projects. 

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Kitco Roundtable is brought to you by Revival Gold. Revival Gold is one of the largest, pure gold, mine developers in the United States. The Company is advancing engineering and economic studies on the Mercur Gold Project in Utah and mine permitting preparations and ongoing exploration at the Beartrack-Arnett Gold Project located in Idaho.

Revival Gold is listed on the TSX Venture Exchange under the ticker symbol “RVG” and trades on the OTCQX Market under the ticker symbol “RVLGF”. The Company is headquartered in Toronto, Canada, with its exploration and development office located in Salmon, Idaho.