Gold futures was trading close to a three-week low on Wednesday amid signs of an improving U.S. economy that boosted equities and the dollar and adds to the case for higher interest rates.
Data on Tuesday showed the United States economy increased at a pace of 5.0 percent during the third quarter, its fastest pace in 11 years and the more robust sign yet that growth has shifted in a decisive manner into higher gear.
Data drove on both the Dow and the S & P 500 stock index of the United States, that indices historic highs closing, and Asia and Europe saw their stock markets rise in sync largely peaceful pre-holiday trade.
It was the dollar, however, which remains the main canal for optimism traders. Having reached one year 8-1 / 2 against a basket of major currencies, was trading around 120.44 yen and 1.2188 for the euro.
Stronger equities and the dollar reducing the demand for bullion, often seen as an alternative to risky assets investment. Solid data could also lead the Federal Reserve to raise interest rates soon, a factor which would affect non-interest bearing gold.
Optimistic outlook for the US economy and the dollar perspective, and outlook of higher interest rates have hurt the yellow metal.
Spot gold was marked slightly to $ 1179.20 an ounce, but near a three-week high of $ 1,170.17 hit on Monday
Holdings in the SPDR Gold Trust fell 1.6 percent to 712.9 metric tons yesterday, the biggest drop since June 2013
The value of the assets in the SPDR has been reduced by 13 percent to about $ 27 billion this year after sinking 57 percent in 2013, according to data compiled by Bloomberg.
In the domestic Indian marketplace MCX gold is trading flat around Rs 26,600.
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