by Christopher Freeburn | September 5, 2013 4:37 pm
Gold sank in Thursday trading after a trio of reports suggested a stronger U.S. economy, potentially signaling that the Federal Reserve will begin tapering its monthly bond-buying sooner rather than later.
The Institute for Supply Management reported that its service sector index climbed to a reading of 58.6 in August, up from 56 in July. The Labor Department said that first time claims for unemployment benefits last week came in below economists’ forecasts. Finally, the government revised upward its estimate of second-quarter worker productivity growth to an annual rate of 2.3%.
The Fed has said that it will ease its stimulus efforts if the economy continues to improve. The U.S. dollar gained on the news.
Gold futures for December delivery fell 1.2% to $1,373 per ounce on Thursday, according to CME Group. Gold traded as high as $1,400 and as low as $1,364.70. Gold bullion closed in London at $1,371, according to BullionVault.
Silver futures for December delivery slid 0.7% to $23.26 per ounce. Thursday’s high for silver was $23.68, while the low was $23.04.
Gold and silver funds dropped in Thursday trading.
Gold and silver mining ETFs were slumped during the day.
Gold mining shares sank on Thursday.
Silver mining shares declined during the day.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.
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