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Gold Prices Fall as U.S. GDP Data Tops Expectations

Published 03/01/2019, 01:08 AM
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Investing.com - Prices of the safe-haven gold fell on Friday in Asia as fourth-quarter U.S. GDP data topped expectations.

Gross domestic product increased at a 2.6% annualised rate in the fourth quarter. Growth in 2018 was the strongest since 2015 and better than the 2.2% logged in 2017, data showed.

The data lifted treasury bond yields and the U.S. Dollar, in turn making the non-interest-bearing gold less attractive.

The precious metal received some support in the previous session after talks between the U.S. and North Korea broke down without a deal.

U.S. President Donald Trump said that he had walked away from talks with North Korean leader Kim Jong-Un because of unacceptable demands to lift U.S. sanctions.

“Basically, they wanted the sanctions lifted in their entirety, and we couldn't do that,” Trump explained in a post-summit press conference.

Gold futures on the Comex division of the New York Mercantile Exchange was down 0.3% to $1,312.85 per ounce by 1:07 AM ET (06:07 GMT). The precious metal has now eased for five straight day. For the month, the futures contract was down about 1%.

With investors moving on from the failed summit, focus returned to the U.S.-China talks. White House economic advisor Larry Kudlow told CNBC on Thursday in an interview that Sino-U.S. trade talks are making "fantastic" progress. "I think we're headed for a remarkable, historic deal," he said.

His comments came after U.S. Trade Representative Robert Lighthizer said it was too early to predict an outcome in talks between Washington and Beijing.

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