Headline gross domestic product for the third quarter showed 3.6% growth, which was an upward revision from the prior reading of 2.8% and higher than economists' expectations of 3.1%, according to a Bloomberg survey.
Gold for February delivery at the COMEX division of the New York Mercantile Exchange was plummeting $30.20 to $1,217 an ounce. The gold price traded as high as $1,243.20. The spot price was falling $20.30 an ounce.
"There's no way I would bet against this trend now," Michael Smith, president of T&K Futures and Options, said in a phone interview. "I think we can break $1,000 [an ounce], no problem."
Smith said it would take four or five more months for the price of gold to sink below $1,000, but his forecast does come in a year that has seen the metal lose more than 27% of its value and after the worst November performance for the asset since 1978.
Wednesday saw an afternoon pop of more than $25 on a short-covering rally, which one trader told TheStreet would be short-lived.
A decline in gold prices in recent months has come amid speculation that the Federal Reserve will curb its economic stimulus program. Market participants have viewed the program, known as quantitative easing, as an inflationary policy due to the Fed purchasing $85 billion of mortgage-backed securities and longer-term Treasuries every month.