Gold Prices Continue to Decline
Gold prices declined for the second consecutive day, falling by nine dollars, to close at $1275.00. Gold prices are inversely linked to interest rate hikes, and with the markets expecting rate hikes in December and January, traders should be prepared for some movement from gold. As well, there are major changes taking place at the Federal Reserve, as Jerome Powell is set to replace Janet Yellen as Fed chair in February.
Strong US economic data also caused a decline in gold prices. Preliminary GDP for the third quarter was 3.3%. This was higher than the original estimate of 3.0% and was characterized by the fastest growth rate since the third quarter of 2014. Jobless claims fell to 238 thousand.