Gold Futures Decline to Lowest Since August on U.S. GDP Report - report
Gold futures fell to the lowest since August after a report showed the U.S. economy grew more than forecast last quarter, damping expectations that the Federal Reserve will expand monetary stimulus, Bloomberg reported.
The U.S. grew at a 3.1% annual rate in the third quarter, more than previously reported and exceeding all projections in a Bloomberg survey, Commerce Department figures showed. The Fed said Dec. 12 it will boost its main stimulus tool by adding US$45 billion of monthly Treasury purchases to an existing pledge of $40 billion in mortgage debt a month. The program is its third round of debt buying, known as quantitative easing, aimed at spurring growth.
Gold futures for February delivery fell 0.8% to $1,653.90 an ounce at 8.57 a.m. on the Comex in New York, after touching $1,653.10, the lowest since Aug. 31. Through yesterday, the price was up 6.4% this year.
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