US economy grows faster than expected in report out just ahead of elections

AI desk brief

US Q3 GDP grew at a 3.4% annualized rate, above the 3.2% Reuters consensus, as resilient consumer spending and AI-related business investment offset the drag from higher oil prices tied to Middle East conflict. The stronger-than-expected activity backdrop, combined with the Fed keeping rates at 3.75%-4% while saying inflation remains elevated, supports a higher-for-longer policy narrative that is ultimately mixed for gold: firmer growth and likely December tightening are bearish, but oil-driven inflation and geopolitical risk remain supportive.