Gold Futures Settle Lower As Dollar Rebounds On Strong Economic Data

Gold futures came off 2-week highs and settled lower on Thursday as the dollar rebounded from recent losses after data showed an improvement in U.S. economic activity in the third quarter.

The dollar index, which dropped to 109.54 in the Asian session, rallied to 110.52 in the New York session.

The index subsequently fell to around 109.80 but recovered to 110.40, gaining more than 0.6%.

Gold futures for December ended lower by $3.60 or about 0.2% at $1,665.60 an ounce, around $7 off the session’s low.

Silver futures for December ended up $0.008 at $19.494 an ounce, while Copper futures for December settled at $3.5195 per pound, down $0.0255 from the previous close.

Data from the Commerce Department showed U.S. economic activity rebounded by slightly more than expected in the third quarter following two straight quarters of contraction.

The report said real gross domestic product shot up by 2.6% in the third quarter following a 0.6% drop in the second quarter and a 1.6% slump in the first quarter. Economists had expected GDP to jump by 2.4%.

The data has offset recent concerns about an impending recession but could also derail recent optimism about the Federal Reserve slowing the pace of interest rate hikes.

Another report from the Commerce Department showed durable goods orders rose by 0.4% in September following a revised 0.2% uptick in August. Economists had expected durable goods orders to increase by 0.6% in September compared to the 0.2% dip that had been reported for the previous month.

A report from the Labor Department showed initial jobless claims inched up to 217,000 in the week ended October 22nd, an increase of 3,000 from the previous week’s unrevised level of 214,000. Economists had expected initial jobless claims to edge up to 220,000.

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