Gold Futures Decline on US GDP Growth Rate

Gold futures declined on Thursday as bearish sentiments dominated the markets after the release of US gross domestic product growth rate. According to the US Commerce Department the gross domestic product for the fourth quarter gained 3 percent as compared to analysts’ expectations of 3.2 percent. However the economist revised the growth rate to 3 percent later on. The greenback strengthened on the news making gold futures less attractive for investors with holdings in foreign currencies.

The dollar index DXY which measures the US dollar’s movement versus its six major counterparts  gained to 79.162 on Thursday as compared to 79.523 on Wednesday’s late trading hours.

Gold futures contract for June delivery fell 0.3 percent or $5.60 to settle at $1,654.90 per ounce on the Comex trading of the New York Mercantile Exchange. Analysts were now looking at $1,650 per ounce as the next support level for the precious metal.

Analysts foresee appreciation in gold prices in the long term as gold ETFs haven’t seen any major outflows. Holdings in the biggest gold backed ETF, SPDR Gold Trust remained the same at 1288.73 metric tons on Thursday as compared to Wednesday.

Among other metals, silver futures contract for May delivery advanced 0.5 percent or $0.16 to settle at $31.99 per ounce while copper futures for the same months slightly gained to $3.80 per pound.

Platinum futures for April delivery fell 0.8 percent or $12.50 to settle at $1,622.70 per ounce while palladium futures contract for June delivery slipped 0.4 percent or $2.80 to settle at $644.55 per ounce.

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