Gold News & Info

Source: Bill Musgrave, American Gold Exchange

Austin— Gold tumbled 2.2% to close at a three-week low under $1,199 after better-than-forecast GDP boosted the dollar and reduced demand for alternative stores of value. Silver plunged nearly 5% to its lowest level in more than four years.

The U.S. economy grew at a 3.5% annual pace in the third quarter, according to the Commerce Department, led by rising military spending and a narrowing trade deficit. Following growth of 4.6% in the second quarter, the data indicates momentum in the U.S. economy. However, weaker business investment, consumer spending, and slowness in housing market indicate growth may slip in the fourth quarter.

Following yesterday's optimistic Fed policy statement, the GDP data added to speculation that the central bank may lean toward raising interest sooner than mid-2015, as many economists predict. The dollar surged to a three-week high, pressuring gold and other commodities denominated in the currency for international trade.

Platinum and palladium also fell hard, losing 1.8% and 2.5%, respectively.

At the Comex close: December gold tumbled $26.30 to $1,198.60; December silver plunged 84 cents to $16.42; January platinum dumped $23.30 to $1,245.90; and December palladium shed $20 to $780.70 an ounce.