Futures prices plunged for gold towards its lowest level in 11 months for last week on Thursday, after data showed the US economy grew faster than initial estimates in the third quarter, as recorded its best performance in two years.
Gold for February delivery on the Comex dipped $3.00, or 0.25%, to $1,130.15 a troy ounce. Prices of the yellow metal sank to $1,124.30 last week, a level not seen since February 2.
Spot gold was steady at $1,131.76 an ounce.
Ministry of Commerce said the US economy expanded by 3.5% in the three months ended Sept. 30, up from a previous estimate of 3.2%, better than the growth of 1.4% in the second quarter.
Report showed PCE increased by 3.0% in the third quarter, up from an initial estimate of 2.7%. Of consumer spending typically accounts for about 70% of economic growth in the United States.
The Fed, whose interest rates rose in the United States last week, three more increases noted in the next year, compared with a previous forecast of two.
Strong economic data the Federal Reserve may push to raise rates sooner rather than later, pressure on gold.
Holdings of the SPDR Gold Trust, continued to fall on Wednesday, losing 0.43 percent to hit 824.54 tonnes. Holdings are down over 12 per cent since November.
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