Gold futures settled higher on Thursday as demand for the safe-haven asset rose after the dollar drifted down after data showed a significant drop in U.S. GDP growth in the third quarter.
The dollar index dropped to 93.28, losing more than 0.5% from the previous close.
Gold futures for December ended up by $3.80 or about 0.2% at $1,802.60 an ounce.
Silver futures for December closed lower by $0.071 or about 0.3% at $24.120 an ounce, while Copper futures for December settled at $4.4385 per pound, gaining $0.0490 or 1.1%.
A report from the Commerce Department showed a dramatic slowdown in the pace of U.S. economic growth in the third quarter. The report said real gross domestic product increased by 2% in the third quarter after jumping by 6.7% in the second quarter. Economists had expected the pace of GDP growth to slow to 2.7%.
Data from the Labor Department showed initial jobless claims decreased for the fourth straight week in the week ended October 23rd, dipping to 281,000, a decrease of 10,000 from the previous week’s revised level 291,000.
Investors also reacted to the policy decisions of central banks. On Wednesday, the Bank of Canada terminated its quantitative easing earlier than expected and suggested the possibility of a rate hike in the middle quarters of 2022.
The Bank of Japan today maintained its massive monetary stimulus and downgraded its real GDP growth and consumer inflation forecasts.
Meanwhile, the European Central Bank left its key interest rates and its forward guidance on asset purchases unchanged, in line with expectations, amid concerns over high inflation.
Policymakers expect key interest rates to “remain at their present or lower levels until it sees inflation reaching two per cent well ahead of the end of its projection horizon and durably for the rest of the projection horizon,” the bank reiterated.
Source: Read Full Article