Updated from 11:07 a.m. EDT with settlement prices
Gold for December delivery lost $1.10 to settle at $1,711.90 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,719.90 and as low as $1,701.40 an ounce, while the spot price was adding $2.10, according to Kitco's gold index.
"This has got to be some short-covering, and I'm a little surprised because the GDP number came out a little bit better than forecast," Phil Streible, senior commodities broker at RJO Futures, said in the morning. "I would have thought that gold and silver might have sold off on that type of news, because then you're going to have less chance of extended [quantitative easing]." But gold couldn't hold its slightly higher prices and sank into the close of the commodities exchange as a positive GDP report suggested a growing trend of improvement in the United States economy. Silver prices for December delivery closed lower by 4 cents to $32.04 an ounce, while the U.S. dollar index was down 0.02% to $80.06. Third-quarter GDP grew at a 2% clip, which was better than consensus expectations among economists who had looked for 1.9% growth. The higher-than-expected number suggested another indicator of a slowly improving economy. Coupled with Thursday's improving weekly jobless claims report, the Federal Reserve's pledge to end its open-ended, mortgage-backed securities purchasing program has left investors wondering as to how long the central bank would continue its stimulus plan. The Fed said so-called QE3 would continue until the economy and labor market showed substantial and sustained improvement. Selling continued after option expiration, said George Gero, precious metals strategist at RBC Wealth Management. Gold mining stocks were mostly lower Friday. Shares of Eldorado Gold (EGO) were dropping about 2%, and shares of Agnico-Eagle Mines (AEM) were off 1.1%. Among mining stocks trading in high volumes, Barrick Gold (ABX) was down 0.79%, while Kinross Gold (KGC) was losing 0.92%. Gold ETF SPDR Gold Trust (GLD) was decreasing 0.05%. -- Written by Joe Deaux in New York. >Contact by Email. Follow @JoeDeaux
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV