Gold exchange traded funds rose in Wednesday’s premarket trading as investors were surprised by a government report showing the U.S. economy shrank in the first quarter partly on lower government spending.
SPDR Gold Shares (GLD) was up nearly 1% before the opening bell.
U.S. gross domestic product fell at a 0.1% annual rate in the fourth quarter, the Commerce Department said Wednesday morning.
U.S. stock futures fell immediately after the report but recouped their losses. SPDR S&P 500 (SPY) was set for a flat open based on premarket dealings.
Similarly, yields on the 10-year Treasury note initially plunged before bouncing. The iShares Barclays 20+ Year Treasury Bond (TLT) was off 0.1% before the bell.
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Full disclosure: Tom Lydon’s clients own SPY, TLT and GLD.
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