Gold prices plunged Thursday as the dollar firmed on speculation the Federal Reserve will raise interest rates in December.
After some initial confusion upon the release of yesterday’s Fed statement, traders eventually took note of the absence of a phrase refering to concerns about global economic headwinds.
If problems in China and Europe ease, the Fed will likely be more comfortable with tightening.
December gold plunged $28.80, or 2.5%, to settle at $1,147.30/oz.
Growth in U.S. economic activity saw a notable slowdown in the third quarter, according to a report released by the Commerce Department on Thursday.
The Commerce Department said real gross domestic product rose by 1.5 percent in the third quarter compared to the 3.9 percent jump seen in the second quarter. Economists had expected a 1.7 percent increase.
The material has been provided by InstaForex Company – www.instaforex.com