Gold Plummets on Profit Taking Ahead of Holidays

The precious metal was on a slippery slope yesterday, plummeting from $1671.80 to $1635.87, losing up to 1.5% after a report by the Department of Commerce indicated that GDP grew by 3.1% in the 3rd quarter compared to 2.7% that was previously reported.In addition, Gold lost ground as John Boehner’s failed to gather support among Republicans to vote for its budget plan B coupled with end of year profit taking.

The US dollar since yesterday evening appears to be preferred by investors as we approach to end of year, this is not abnormal since base currency of financial reporting is the US dollar in majority. Besides, strong GDP data and better than expected Existing Home Sales coupled by Philadelphia Fed Manufacturing reported surprisingly higher at 8.1 in December compared to -10.7 the previous month, raised greenback. The US dollar Index was trading close to the top of 79.43/78.97 narrow range, attempting to reverse downward structure.

Source: InfinMarkets.com

Ani Stepanyan

Ani is the one responsible mostly for finance related articles. Despite it she will never hesitate to spice up the article or write about more general topics to entertain. Ani is very friendly and outgoing, she is always ready to cheer up and lighten the atmosphere.

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