WASHINGTON (dpa-AFX) - Gold prices fell sharply on Thursday as data showing a sharper than expected acceleration in U.S. economic growth in the second quarter prompted investors to seek riskier assets such as equities.
The dollar's weakness helped limit the yellow metal's downside a bit. The dollar index, which eased to 104.08 in the Asian session, but briefly emerged higher to 104.46 around mid morning, dropped again and was last seen at 104.30, down 0.1% from the previous close.
Gold futures for August fell to $2,354.80 an ounce, losing $60.90 or about 2.55%.
Silver futures for August dropped to $27.750 an ounce, down $1.396 from the previous close, while Copper futures for August climbed to $4.1105, gaining $0.0165.
A report released by the Commerce Department showed real gross domestic product in the U.S. surged by 2.8% in the second quarter after jumping by 1.4% in the first quarter. Economists had expected GDP to increase by 2%.
The Commerce Department said the GDP growth primarily reflected increases in consumer spending, private inventory investment, and nonresidential fixed investment.
Compared to the first quarter, the acceleration in real GDP in the second quarter primarily reflected an upturn in private inventory investment and an acceleration in consumer spending, the Commerce Department said.
On the inflation front, the report said the personal consumption expenditures price index increased 2.6% in the second quarter compared with an increase of 3.4% in the first quarter.
Excluding food and energy prices, the PCE price index increased 2.9% in the second quarter compared with an increase of 3.7% in the first quarter.
A separate data from the Commerce Department said durable goods orders plunged by 6.6% in June after inching up 0.1% in May. Economists had expected durable goods orders to rise by 0.3%.
A report from the Labor Department showed initial jobless claims fell to 235,000 in the week ended July 20th, a decrease of 10,000 from the previous week's revised level of 245,000. Economists had expected jobless claims to dip to 238,000 from the 243,000 originally reported for the previous week.
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