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1st LD Writethru: Gold down on profit taking despite weaker U.S. GDP

Xinhua, April 30, 2015 Adjust font size:

Gold futures on the COMEX division of the New York Mercantile Exchange pulled back from three-week highs on Wednesday as profit taking put more pressure on the precious metal, offsetting the support from downbeat U.S. economic growth in the first quarter.

The most active gold contract for June delivery lost 3.9 U.S. dollars, or 0.32 percent, to settle at 1,210 dollars per ounce.

Gold took the brunt of the selling pressure on apparent profit- taking on Wednesday after they rallied more than 3 percent in the past two days to their highs in three weeks.

Gold prices trimmed losses after the U.S. government reported its economy in the first quarter almost stalled, much lower than expected, which pulled down the U.S. dollar and stocks, thus lifting safe-haven investment demand for the precious metal.

U.S. real gross domestic product (GDP) increased at an annual rate of 0.2 percent in the first quarter this year, according to an advance estimate released by the U.S. Commerce Department on Wednesday.

Analysts indicate that the figures could offer plenty of fuel for the doves at the Federal Reserve who want to hold off the first signals of a rate increase, which would be positive for gold, though a weak first-quarter figure was seen as a possibility due to factors such as the weather.

Investors will look for clues to the timing of the central bank 's first rate hike since the Great Recession from the Fed's post- meeting policy statement later Wednesday.

Silver for July delivery rose 7.2 cents, or 0.43 percent, to close at 16.702 dollars per ounce. Platinum for July delivery added 2.9 dollars, or 0.25 percent, to close at 1,161.50 dollars per ounce. Endite