Gold Prices Drift Lower on Signs of Bullish US Economic Growth

Investing.com – Gold prices fell on Wednesday after the dollar moved off intraday lows on signs that fourth quarter economic growth remained solid, cementing investor expectations that the Federal Reserve will raised rates for the third time this year in December.

for December delivery on the Comex division of the New York Mercantile Exchange fell by $4.40, or 0.35%, to $1282.95 a troy ounce.

A duo of reports on retail sales and inflation lifted the dollar off lows, pressuring gold prices to retreat from highs as the precious metal remained on track to post a loss for the first time this week.

The Labor Department said on Wednesday its rose 0.1% last month after jumping 0.5% in September.

increased 0.2% last month, the Commerce Department said Wednesday beating expectations for a 0.1% increase.

The uptick retail sales suggested that consumption growth in the fourth quarter remained solid, further strengthening the narrative of an improving US economy. That cemented expectations for a year-end rate hike as investing.com’s showed 100% of traders expect the Federal Reserve to raise rates in December.

Royal Bank of Canada’s Tom Porcelli said that the bank revised upwards its estimate for fourth quarter consumption to 2.7% from 2.4% after the upbeat retail sales print while its estimate for fourth quarter GDP rose to 3.4% from 3.2%.

Gold is sensitive to moves higher in both bond yields and the U.S. dollar – A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion.

In other precious metal trade, fell 0.54% to $16.98 a troy ounce, while gained 0.63% to $933.10.

traded at $3.05, down 0.42% while fell by 1.03% to $3.07.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.