Investing.com - Gold prices fell to the lowest levels of the session on Thursday, after data showed that the U.S. economy grew more than expected in the third quarter.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery fell to a session low of $1,199.60 a troy ounce, the weakest level since October 6.
Prices recovered to last trade at $1,203.50 during U.S. morning hours, down $21.40, or 1.75%.
Futures were likely to find support at $1,183.30, the low from October 6, and resistance at $1,230.40, the high from October 29.
Also on the Comex, silver futures for December delivery plunged 64.1 cents, or 3.71%, to trade at $16.62 a troy ounce, a level not seen since March 2010.
The Commerce Department said gross domestic product grew at a seasonally adjusted annual rate of 3.5% in the three months ended September 30, above expectations for growth of 3%.
Separate data showed that the number of individuals filing for initial jobless benefits increased by 3,000 last week to 287,000 from the previous week’s revised total of 284,000.
Jobless claims have held below the 300,000-level for seven consecutive weeks, indicating that the recovery in the labor market is gaining momentum.
Meanwhile, investors adjusted to a future without large scale asset purchases from the Federal Reserve.
The U.S. central bank ended its monthly bond-buying program, known as quantitative easing, in a widely expected decision at the conclusion of its two-day policy meeting on Wednesday.
The Fed retained its commitment to keep interest rates near zero for a “considerable time," but sounded more hawkish on the labor market, saying that “underutilization of labor resources is gradually diminishing.”
Prior statements from the Fed described the slack in the jobs market as "significant."
The US dollar index, which tracks the performance of the greenback against a basket of six major rivals, surged to a three-and-a-half-week high, as market players brought forward expectations of when the Fed would eventually raise rates.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Elsewhere in metals trading, copper for December delivery slumped 4.9 cents, or 1.58%, to trade at $3.055 a pound.