The gross domestic product (GDP) in the country measures the growth rate of the economy in a given period of time, usually a quarter. The most reliable numbers are those that compare GDP with the previous quarter of the EG Q2 from 2023. VS Q1 from 2023, or to the same period in the previous year, EG Q2 from 2023. Compared to Q2 from 2022, quarterly drawings of GDP will extrapolan the rate of the quarter, as if it was stood for the rest of the year. However, they can mislead if transient shocks affect the growth in one quarter, but it is unlikely that they last throughout the year – as was the case in the first quarter of 2020 in the Covid pandemic explosion when growth fell.

A higher GDP result is generally positive for the national currency, because it reflects the growing economy, which is more likely that it produces goods and services that can be exported, and also attracts higher foreign investment. From the same token, when GDP drops, it is usually negative for the currency. When the economy grows, people spend more, which leads to inflation. The central bank in the country must therefore set interest rates to fight inflation with a side effect of attracting a larger influx of capital of global investors, thus helping the local currency.

When the economy grows and GDP grows, people spend more, which leads to inflation. The central bank in the country must therefore set interest rates to fight inflation. Higher interest rates are negative in the case of gold because they enhance the possibilities of storing gold compared to placing money on the deposit account. Therefore, a higher GDP growth rate is usually a bear factor at the price of gold.