Gold News & Info

Source:Bill Musgrave, American Gold Exchange

Austin— Gold fell 0.7% to a three-day low of $1,248 as the dollar rallied on revised GDP data, eroding demand for alternative stores of value.

The U.S. economy grew 2.1% in the fourth quarter of 2016, rather the 1.9% previously reported, as consumer spending expanded by more than initially thought. The revision by the Commerce Department put the economy on firmer footing entering 2017, though full-year growth was still just 1.6%, the worst since 2011, and the Atlanta Fed tallies real GDP growth this quarter at just 1%.

The dollar jumped 0.5% against major rivals following the report, pressuring gold and other commodities priced in it for international trade. A weaker euro also boosted the buck on follow through from yesterday's reports that the ECB is planning to maintain quantitative easing when it meets in April.

Adding to pressure on safe-haven assets, the Dow and S&P 500 rose 0.3% each after the Commerce Reported that corporate profits are on the upswing.

The CBO raised its federal debt projection today, saying it will become 150% of the U.S. economy by 2047 at current rates of spending and revenue. It is now 77%, the highest level since World War II.

The other precious metals were mostly lower, with silver and platinum down 0.3$ and 0.1%, respectively, while palladium added 0.9%.

At the Comex close: June gold fell $8.80 to $1,248; May silver slipped 5 cents to $18.21; July platinum dipped 70 cents to $954.60; and June rose $7.30 to $797.50 an ounce.