Investing.com - Gold prices fell to the lowest levels of the session on Tuesday, after data showed that the U.S. economy grew more than initially estimated in the third quarter.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery shed $3.40, or 0.28%, to trade at $1,193.20 a troy ounce during U.S. morning hours.
A day earlier, Comex gold prices lost $1.80, or 0.15%, to settle at $1,196.60 an ounce.
Futures were likely to find support at $1,177.00, the low from November 20, and resistance at $1,208.20, the high from November 21.
The Commerce Department said gross domestic product grew at a seasonally adjusted annual rate of 3.9% in the three months ended September 30, above expectations for a reading of 3.3%.
Preliminary data initially pegged U.S. growth at 3.5% in the third quarter. The U.S. economy expanded by 4.6% in the preceding quarter.
The data showed personal consumption rose 2.2% in the third quarter, beating expectations for a 1.9% gain and up from a preliminary estimate of 1.8%.
Consumer spending typically accounts for nearly 70% of U.S. economic growth.
Gold prices are likely to remain vulnerable in the near-term amid indications a strengthening U.S. economic recovery will force the Federal Reserve to start raising interest rates sooner and faster than previously thought.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
The US dollar index, which tracks the greenback against a basket of six major rivals, rose 0.2% to hit 88.40, not far from Monday's four-year high of 88.52.
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.
Also on the Comex, silver futures for March rose 13.3 cents, or 0.81%, to trade at $16.56 a troy ounce.
Elsewhere in metals trading, copper for March delivery rose 0.2 cents, or 0.08%, to trade at $3.008 a pound.
Traders continued to weigh whether a surprise rate cut in China last week would translate into increased demand for the industrial metal.
The move came in response to recent signs of a slowdown in the world’s second-largest economy.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.