Gold prices strives to futures trade below the level of $ 1,100 on Thursday after data showed economic growth of the United States picked up during the second quarter, supported in the case of higher interest rates to later this year, for the first time since 2006.
On the Comex, Gold futures for December delivery hit an intraday low of $1,081.50 a troy ounce. While, gold fell 0.4 per cent to USD 1,092.49 an ounce in Singapore.
Analysts attributed the drop in gold futures to a weak worldwide trend as the Fed was closer to increase interest rates in the United States for the first time since 2006.
The DOC said earlier that the economy expanded 2.3% in the three month period ended June 30, expectations for growth of 2.6% is missing. The economy spread 0.6% during the previous quarter, compared with an earlier reported 0.2% contraction.
The data showed that personal consumption rose 2.9% during the second quarter, above expectations for an increase of 2.7%, and compared with an increase of 1.8% in the previous quarter. Consumer spending normally makes up nearly 70% of economic growth in the United States.
Simultaneously, the Department of Labor of the United States said the number of individuals who filed for unemployment insurance grew by 12,000 last week to 267,000 from the previous week’s total of 255,000. Analysts had expected initial unemployment claims to grow in 15000-270000 last week.
Unemployment claims for the first time have remained below the 300,000 level for 21 consecutive weeks, which is usually associated with a firming labor market.
Besides, amid a weak global trend, at Multi Commodity Exchange, delivery in far-month October contract was trading lower by Rs 20, or 0.08 percent at Rs 24,909 per 10 grams.
For Commodity Market Tips, MCX Live Tips, Gold-Silver Prices and trading market latest news & updates with 100McxTips, follow us on Twitter @100mcxtips and Like on Facebook. And to contact the reporter on this story email at firstname.lastname@example.org or Call: +91-761-4012307