Gold Declines Before U.S. GDP Report as Silver Holds Gain

New York (Sept 26)  Gold fell in New York before U.S. reports on economic growth and inflation. Silver held gains.

U.S. gross domestic product probably grew 4.6 percent in the second quarter, faster than previously estimated at 4.2 percent, according to economists in a Bloomberg survey. The core PCE price index is seen holding at 2 percent, matching the economic projections of the Federal Reserve.

“If the PCE is higher than 2 percent, the fear will be the Fed is going to hike rates quicker than anticipated,” Andrey Kryucheknov, commodity strategist at VTB Capital in London, said by phone today. “Gold has been trading against the dollar for most of September and is stalling at around $1,200. Generally, it’s decoupled from everything else.”

Futures for December delivery dropped 0.2 percent to $1,219.70 an ounce by 7:24 a.m. on the Comex in New York. The Bloomberg Dollar Spot Index rose for sixth consecutive day, curbing demand for the metal as an alternative to stocks and bonds.

Silver gained 0.5 percent to $17.525 an ounce, platinum fell 0.3 percent to $1,310.90 an ounce and palladium advanced 0.2 percent to $804.55 an ounce.

Source: Bloomberg