Gold Falls to $1,287 an Ounce on Positive Economic Data

Gold was down 0.7 percent or $9.01 to $1,287 an ounce on Wednesday, according to Reuters. U.S. consumer spending, which comprises two-thirds of the country’s economic activity, increased at a rate of 3 percent in the first quarter, according to a report from the Commerce Department released today. This data shows continued growth in the U.S. economy, making both equities and the dollar more appealing. Furthermore, U.S. policymakers will announce later in the day whether they will continue to taper the Federal Reserve’s bond-buying program, which investors believe is likely.

“That should have a negative impact on gold, unless we get some surprising developments again on the geopolitical front,” Peter Fertig, a consultant at Quantitative Commodity Research, told Reuters.

U.S. gold for June delivery was trading down $8.50 at $1,287.70 per ounce.