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1st LD Writethru: Gold regains ground on downbeat U.S. GDP data

Xinhua, January 31, 2015 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange bounced back on Friday after a report showed weaker-than-expected U.S. economic growth.

The most active gold contract for April delivery rose 23.3 U.S. dollars, or 1.86 percent, to settle at 1,279.2 dollars per ounce.

The Commerce Department said Friday that the U.S. Gross Domestic Product (GDP) grew at an annual rate of 2.6 percent during the fourth quarter of 2014 following a 5.0-percent increase in the third quarter.

The figure was much lower than economists' expectation of 3.2 percent, indicating that the world's largest economy growth in the fourth quarter was a little soft.

GDP is the broadest measure of aggregate economic activity and encompasses every sector of the economy.

The slow down in the U.S. economic growth raised doubt about whether the Federal Reserve could raise interest rates as early as June, which is a positive sign for gold buyers, said some analysts.

On Thursday, gold for April delivery dropped 2.4 percent in its biggest one-day decline in 13 months as investors booked profits on expectations of a mid-year rate hike by the Federal Reserve.

Silver for March delivery increased 43.5 cents, or 2.59 percent, to close at 17.208 dollars per ounce. Platinum for April delivery added 20.9 dollars, or 1.72 percent, to close at 1,238.20 dollars per ounce. Endite