Gold slipped on Thursday owing to the stronger equities battered safe-haven appeal of the precious metal and investors a large extent played down poor economic numbers U.S. growth for the most recent jobless claims data.
The U.S. economy will contracted at a far more pronounced rate in the first trimester than previously thought, turning in one of its worse performances yet not of recession, but growth as seems to have picked strongly.
Spot gold was dropped 0.2 percent to $ 1316.60 an ounce at 0640 GMT, after surging 0.1 percent in the previous session. The prewcious metal continued to hold near two-month high, supported from violence in Iraq.
On the other hand, U.S. gold for delivery in August dropped 0.71%, or $ 9.40, to trade at $ 1,313.20 a troy ounce during early European morning hours. Futures held within a range of $ 1312.20 and $ 1320.60 an ounce.
At the Multi Commodity Exchange, gold for delivery in August eased by Rs 146, or 0.53%, to Rs 27,605 per 10 grams.
Gold held endorsed after first-quarter growth was reviewed down to U.S. strongly, reinforcing expectations that the Fed hold rates kept longer.
The precious metal was previous backed by dollar weakness, which was pining near one-month lows value against a basket of major currencies early Thursday. Other traders said the precious metal will still see volatile trading.
The dollar decreased through the board after the Commerce Department said the U.S. GDP shrank by an annual rate of 2.9% during the first three months of the year as compared with the consensus estimate of a 1.7%.
The first quarter U.S. GDP initially reported to have risen by 0.1%, but it was later revised to display a contraction of 1.0%.
The distinction between the second and third estimate was the biggest since records started in 1976, the Commerce Department said.
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