Investing.com - Gold futures came under heavy selling pressure on Thursday, dropping below the key USD1,300-level after stronger-than-expected U.S. growth data reinforced expectations that the Federal Reserve will begin tapering its stimulus program sooner-than-expected.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,302.90 a troy ounce during U.S. morning trade, down 1.15%.
Comes gold prices fell to USD1,296.90 a troy ounce earlier, the lowest since October 17. The December contract ended 0.74% higher on Wednesday to settle at USD1,317.80 a troy ounce.
Gold futures were likely to find support at USD1,273.80 a troy ounce, the low from October 17 and resistance at USD1,327.30, the high from November 1.
The U.S. government said in a report that the economy expanded at a seasonally adjusted annual rate of 2.8% in the three months to September, the biggest increase in a year and a half.
Analysts had expected the U.S. economy to grow 2% in the third quarter.
A separate report showed that the number of people who filed for unemployment assistance in the U.S. fell broadly in line with market expectations last week.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits declined by 9,000 to a seasonally adjusted 336,000 last week.
Analysts had expected U.S. jobless claims to fall by 10,000 to 335,000 from the previous week’s total of 345,000.
The upbeat data added to ongoing speculation that the Fed may start tapering its USD85-billion-a-month bond-buying program at its December meeting, boosting the U.S. dollar.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 1.1% to trade at 81.44, the highest since September 13.
A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.
Gold prices briefly rose to a session high of USD1,325.70 a troy ounce after the European Central Bank lowered its benchmark interest rate to a record-low of 0.25% in November from 0.5%.
Elsewhere on the Comex, silver for December delivery dropped 1.1% to trade at USD21.52 a troy ounce, while copper for December delivery inched up 0.2% to trade at USD3.243 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,302.90 a troy ounce during U.S. morning trade, down 1.15%.
Comes gold prices fell to USD1,296.90 a troy ounce earlier, the lowest since October 17. The December contract ended 0.74% higher on Wednesday to settle at USD1,317.80 a troy ounce.
Gold futures were likely to find support at USD1,273.80 a troy ounce, the low from October 17 and resistance at USD1,327.30, the high from November 1.
The U.S. government said in a report that the economy expanded at a seasonally adjusted annual rate of 2.8% in the three months to September, the biggest increase in a year and a half.
Analysts had expected the U.S. economy to grow 2% in the third quarter.
A separate report showed that the number of people who filed for unemployment assistance in the U.S. fell broadly in line with market expectations last week.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits declined by 9,000 to a seasonally adjusted 336,000 last week.
Analysts had expected U.S. jobless claims to fall by 10,000 to 335,000 from the previous week’s total of 345,000.
The upbeat data added to ongoing speculation that the Fed may start tapering its USD85-billion-a-month bond-buying program at its December meeting, boosting the U.S. dollar.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 1.1% to trade at 81.44, the highest since September 13.
A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.
Gold prices briefly rose to a session high of USD1,325.70 a troy ounce after the European Central Bank lowered its benchmark interest rate to a record-low of 0.25% in November from 0.5%.
Elsewhere on the Comex, silver for December delivery dropped 1.1% to trade at USD21.52 a troy ounce, while copper for December delivery inched up 0.2% to trade at USD3.243 a pound.