US economic growth accelerated more than expected in the second quarter .The second-quarter U.S. gross domestic product report came in at up 4.0%, which was a big miss to the upside. A 3.0% rise was expected versus a reading of minus 2.9% in the first quarter.
Growth in the second quarter was driven mainly by consumer spending and a swing in business inventories. Employment growth, which has exceeded 200,000 jobs in each of the last five months, and strong readings on the factory and services sectors from the Institute for Supply Management underpin the bullish expectations for the rest of the year.
The GDP report pressured the gold market and U.S. Treasuries, while boosting modestly the U.S. stock indexes and the U.S. dollar index.
