WASHINGTON (dpa-AFX) - Gold futures settled lower on Thursday, losing for the sixth consecutive session, as the dollar climbed higher after the Federal Reserve signaled fewer interest rate cuts next year than previously expected.
Data showing a bigger than estimated increase in U.S. GDP growth also provided support for the Fed's cautious approach to further rate cuts.
The Fed cut the key lending rate by 25 basis points as expected but revised its projections to signal just two interest rate cuts next year compared to the four previously forecast, citing stubbornly high inflation.
The hawkish Fed outlook lifted the yield on benchmark U.S. Treasury yields to a seven-month high and the dollar to a two-year peak.
Fed Chair Jerome Powell's repeated references to the need for caution from here underscored investor concerns that Trump's fiscal, trade and tariff policies may fuel inflation and keep U.S. interest rates higher for longer.
The dollar index, which climbed to 108.49, was last seen at 108.37, up more than 0.3% from previous close.
Gold futures for December closed down $44.30 or nearly 1.7% at $2,592.20 an ounce, the lowest settlement in more than a month. Gold futures have shed about 5.2% over the last six sessions.
Silver futures for December tumbled $1.3160 or about 4.3% to $29.094, closing lower for a third straight session.
Copper futures for December dropped to $4.0210 per pound, losing $0.0790 or 1.93%.
The Commerce Department released a report this morning showing the pace of U.S. economic growth unexpectedly surged by more than previously estimated in the third quarter.
The report said gross domestic product shot up by 3.1% in the third quarter, reflecting an upward revision from the 2.8% jump previously reported. Economists had expected the pace of growth to be unrevised.
A separate report released by the Labor Department showed first-time claims for U.S. unemployment benefits pulled back by more than expected in the week ended December 14th, falling to 220,000, a decrease of 22,000 from the previous week's unrevised level of 242,000.
Economists had expected jobless claims to dip to 230,000.
The Bank of Japan (BOJ) and the Bank of England (BoE) both kept their respective interest rates unchanged, as widely expected.
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