Strong US Economic Data Pushes Gold Down to $1,314

Investors’ optimism didn’t last long today, and gold prices took a dive. Hopes the central bank will continue its $85 billion monthly bond purchases may have been dashed when new data was reported this morning showing the U.S. economy grew faster during the second quarter than expected, Reuters reported.

Markets are waiting on the Federal Reserve to make an announcement this afternoon following its two-day meeting. A weak dollar and early optimism pushed gold prices up this morning – nearing its biggest monthly gain since January 2012. However, spot gold eventually fell $13.14 to $1,314 an ounce, and U.S. gold futures for August delivery were down $10.51 to $1,314 an ounce.

Bloomberg reported gold futures for December delivery were also down to $1,316.90 an ounce — a drop of $7.90.