Gold drops on upbeat US economic data

Gold futures dropped on upbeat U.S. economic data Wednesday, ending the month of July with a gain of 7. 3 percent. Nevertheless, gold price has lost 22 percent year to date. The most active gold contract for December delivery on the COMEX division of the New York Mercantile Exchange dropped 11.8 dollars, or 0.89 percent, to settle at 1,313 dollars per ounce. The U.S. government said Wednesday that the U.S. economy grew 1. 7 percent in the second quarter, better than the one-percent-gain forecast by Wall Street. Also, Automatic Data Processing Inc. reported the private- sector employers added 200,000 jobs in July, beating economists' expectations. Moreover, Chicago purchasing managers' index, a barometer of Chicago business, rose to 52.3 in July from 51.6 in June. Readings above 50.0 indicate expansion. Position adjusting at the end of a month partly accounted for gold drop Wednesday, market analysts said. The U.S. Federal Reserve's announcement didn't come out until gold floor trading on COMEX closed. To everyone's disappointment, the Fed only slightly downgraded its economic outlook and offered no hint about its plans for the monthly 85-billion-dollar assets purchasing program, thus exerting little influence on gold electronic trading. Silver for September delivery lost 5.2 cents, or 0.26 percent, to close at 19.628 dollars per ounce. Platinum for October delivery dipped 8.2 dollars, or 0.57 percent, to close at 1,429.3 dollars per ounce.