US gold falls on upbeat economic data

Gold futures on the COMEX division of the New York Mercantile Exchange kept falling Thursday on upbeat economic data. The most active gold contract for December delivery dropped 5.9 dollars, or 0.42 percent, to settle at 1,412.9 dollars per ounce. U.S. Labor Department reported Thursday that the number of people applying for new U.S. unemployment-insurance benefits declined by 6,000 to 331,000 in the week ending Aug. 24, near the lowest level in six years. Meanwhile, U.S. Commerce Department said that U.S. gross domestic product (GDP) grew at an annual rate of 2.5 percent in the second quarter, much faster than 1.1 percent in the first quarter. Upbeat economic data have rekindled market expectations that the U.S. Federal Reserve will soon scale down its bond purchases, and therefore taken away the safe-haven appeal of gold. Gold also lost strong support as prospect of an immediate military attack against Syria is fading away. U.S. President Barack Obama said on Wednesday that he hadn't quite made up his mind yet on Syria; while British Prime Minister David Cameron has agreed to hold a separate vote to approve any military action in Syria. U.S. dollar's upward climb on upbeat economic data Thursday further dampened gold. Silver for December delivery dropped 29.9 cents, or 1.22 percent, to close at 24.14 dollars per ounce. Platinum for October delivery lost 17.7 dollar, or 1.15 percent, to close at 1,522.4 dollars per ounce.