Gold Ends Lower on Stronger-Than-Expected U.S. Recovery; U.S. GDP Growth Revised Up to 5%
Gold prices fell Tuesday, weighed down by a larger-than-expected revision to U.S. economic growth.</br></br>Gold for February delivery, the most actively traded contract, closed down $1.80, or 0.2%, at $1,178.00 a troy ounce on the Comex division of the New York Mercantile Exchange.</br></br>The U.S. economy posted its strongest growth in more than a decade during the third quarter, supported by robust consumer spending and business investment, Commerce Department data showed Tuesday. Gross domestic product growth was revised to 5% in the period, beating analysts' expectations of 4.3% expansion.</br></br>The economy's robust expansion bolstered the case for the Federal Reserve to raise interest rates next year, hurting prices for gold, which struggles to compete with yield-bearing investments during times of tighter monetary policy.</br></br>"Gold didn't like this number at all," said Bob Haberkorn, a broker at RJO Futures. "There is now more ammo for the Fed to raise rates."