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Gold Futures Settle Lower On Dollar's Rise, Strong GDP Data

Gold prices drifted lower on Thursday and pushed the most active gold futures contract to another weak close, as the dollar strengthened and equities moved higher after data showed strong U.S. GDP growth in the third quarter.

The dollar index rose to 94.10 and was last seen at 93.95, up nearly 0.6% from the previous close.

Gold futures for December ended down $11.20 or about 0.6% at $1,868.00 an ounce, a fresh low in about a month.

Silver futures for December closed lower by $0.001 at $23.360 an ounce, while Copper futures for December settled at $3.0565 per pound, down $0.0075 from the previous close.

Data from the Commerce Department said real gross domestic product skyrocketed by 33.1% in the third quarter after plunging by 31.4% in the second quarter. Economists had expected GDP to soar by 31%.

The substantial rebound in GDP came as consumer spending bounced back sharply, spiking by 40.7% in the third quarter after plummeting by 33.2% in the second quarter.

Data from the Labor Department showed initial jobless claims in the U.S. dropped to 751,000 in the week ended October 24th, a decrease of 40,000 from the previous week's revised level of 791,000. Economists had expected jobless claims to dip to 775,000 from the 787,000 originally reported for the previous week.

With the bigger than expected decrease, jobless claims fell to their lowest level since hitting 282,000 in the week ended March 14th.

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