(Gold story updated with price changes and analyst commentary)
NEW YORK (TheStreet) -- Gold prices remained in positive territory Friday afternoon as U.S. gross domestic product numbers met expectations and stock action remained flat.
"The GDP numbers (at least initially), had an opposite and counterintuitive effect on the U.S. dollar and helped bullion advance a bit nearer to the $1,350.00 mark in another manifestation that players expect that nothing short of spectacular economic recovery data will temper the Fed's accommodative stance and the size of the 'package' it may intend to deliver next week," Kitco analyst Jon Nadler said in a daily note."
Gold for December delivery was popping by $13.10 to $1,355.60 an ounce at the Comex division of the New York Mercantile Exchange. The gold price Friday has traded as high $1,359.70 and as low as $1,335.20.
was flat at $77.25, while the euro was down 0.2% to $1.39 against the dollar. The spot gold price was up more than $12, according to Kitco's gold index.
Steady buying to fund new ETF listings in gold, copper, silver, palladium and platinum all at once added to the continued investment demand today," added RBC Wealth Management senior vice president and financial consultant George Gero in a daily note.
The Department of Commerce on Friday reported that the U.S. economy grew by 2% in the third quarter, which was in line with expectations, according to
, though a
Dow Jones Newswires
poll of economists showed consensus GDP growth expectations of 2.1%.
The economy grew by 1.7% in the second quarter.
Other U.S. economic data released on Friday included the Chicago Purchasing Managers Index and the Reuters-University of Michigan's Consumer Sentiment index. Data from the Chicago Purchasing Managers Index showed that manufacturing activity in the Chicago area turned out better than economists had forecast. The readings came in at 60.6 in October versus 60.4 in September and compared with the consensus reading of 58 among economists, according to
The Reuters-University of Michigan's Consumer Sentiment index showed final readings in October of 67.7, a tad lower than the reading of 68 that economists were forecasting and lower than the reading of 68.2 in September, according to
On Thursday, gold prices climbed as the dollar caved on quantitative easing concerns. Gold prices were shifting between positive and negative territory throughout the week as traders and investors tried to factor in the size of the Fed Reserve's next round of quantitative easing (QE). Although another round of QE is expected, many are still concerned that the size of it may be less than expected.
The next set of Federal Open Market Committee minutes will be released at 2 p.m. next Wednesday.
"As a whole we expect the theme of dip-buying to continue, particularly in gold as physical buying picks up ahead of peak buying period," FastMarkets research analyst James Moore said in a daily newsletter. "Silver could also be in for a choppy ride as the hearing into market manipulation continues."
On Tuesday, CFTC (Commodity Futures Trading Commission) Commissioner Chilton, in a published testimony, said he believes that there have been "repeated attempts to influence prices in the silver markets. There have been fraudulent efforts to persuade and deviously control that price."
"The CFTC staff has worked extremely hard on the silver investigation. That said, there is a point at which it is our responsibility to say something, " Chilton said. "Within the law, I have done so. I am hopeful that the agency will speak publicly about the investigation in the very near future and when they do so that it will be in a more granular fashion than I am permitted from doing at this time."
Chilton said that at this point in the investigation he's unable to divulge the names of the traders that may have come up in the investigation and their positions.
As Chilton speaks out about his thoughts, EverBank World Markets president Chuck Butler continues to believe that silver is the new gold. Silver has been viewed as the "poor man's gold" and a currency that can hold onto more value over paper currencies.
were up 72 cents to $24.59, while copper prices were down 5 cents to $3.73.
, a risky but profitable way to
, were trading higher Friday afternoon.
was advancing by 5.4% to $11.19 and
was adding 3.4% to $78.03.
was rising by 1.7% to $47.83 and
SPDR Gold Trust
was up 1% to $132.58.
-- Written by Andrea Tse in New York.
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