MW: Gold slips after better-than-expected GDP report
NEW YORK (MarketWatch) — Gold futures lost ground Tuesday after a better-than-anticipated reading on U.S. economic growth dampened haven demand for the yellow metal.
The government said gross domestic product rose by 3.9% in the third quarter, up from a prior estimate of 3.5% and above forecasts for 3.3%. U.S. stock futures added to their gains in the wake of the report, which indicated that GDP has grown by an average of 4.2% in the past two quarters, representing the strongest six-month stretch since the middle of 2003.
December gold futures GCZ4, +0.28% were last down $3.20, or 0.3%, to $1,192.50 an ounce while December silver SIZ4, +1.55% rose 13 cents, or 0.8%, to $16.51 an ounce.
“Gold has levelled off in the $1,190 to $1,210 range consolidating recent gains,” said Colin Cieszynski, chief market strategist at CMC Markets, in a note late Monday. The metal has been rallying in November to date, advancing about 1.8%. Read more: Glimmers of hope for gold investors
Cieszynski said gold has been making higher lows, indicating ongoing accumulation, and if it can climb further, he sees the next resistance area around $1,235.
