Prices of US gold futures fell to the lowest levels within four weeks on Wednesday after data showed the US economy shrank by less than initially expected in the first three months of the year, with support from a higher gain consumer spending.
U.S. Comex Gold futures for August delivery hit an intraday low of $1,170.50 a troy ounce, before trading at $1,171.20. The price went to the fourth consecutive decline, the longest decline since May 27.
The DOC said gross domestic product contracted at an annualized rate of 0.2% during the first quarter, in line with expectations and compared with a prior estimate of a 0.7% contraction.
The data showed that consumer spending rose 2.1% in the three months ending March 31, just above expectations for an increase of 1.9%, and compared with an initial estimation of an increase of 1 , 8%. Consumer spending normally up nearly 70% of economic growth in the United States.
Further to the report, gold dropped to 0.7 percent to $ 1168.10 an ounce, a minimum of two weeks.
Market sentiment was struck after a Greek government official said, “Greek Prime Minister, Alexis Tsipras told associates that some of the latest proposed reform arrangements from Greece had not been accepted by creditors.”
Gold rose last week on demand for a haven amid the impasse between Greece and its creditors.
Greek proposal has rejected, by creditors. The gold glitter has begun to grow again. Domestic and international market is trading on the edge. MCX gold trades around 0.10 per cent to Rs 26 625.
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