Gold prices plunged
Thursday, hitting lows not seen since August, after the U.S. Commerce
Department reported an unexpectedly robust reading on third quarter U.S.
gross domestic product (GDP).
After the surprising strong report, February gold tumbled $14.50 an ounce to $1,653.50 and spot gold sank $22.80 to $1,643.10.
Silver
prices fell as well, losing $1.13 to $29.95 shortly before noon. Prior
to the report, the yellow and white metals were little changed.
The fresh report told that GDP in the third quarter
expanded at an annual rate of 3.1%, the fastest growth since late 2011.
That was up from the 2.7% pace logged last month, and better than
economists' expected 2.8% rate.
Phil Streible, a senior commodity broker at R.J.
O'Brien & Associates in Chicago told Bloomberg News, "The GDP number
was better than forecast, so the thinking is that improving conditions
in the economy might mean a light at the end of the tunnel on when the
Fed will end QE3."
Gold and silver have been big beneficiaries of the FOMC's generous QE3 programs.
But there's more than the end of QE measures as to why gold prices are down.
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