Gold Falls for Second Day as U.S. GDP Growth Crimps Haven Demand

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Gold futures fell for the second straight day as the U.S. economy expanded more than estimated, crimping demand for the precious metal as an alternative investment.

The price dropped 2.2 percent last week on concern that the Federal Reserve will boost interest rates next year. Traders predict a 69 percent chance that the central bank will raise borrowing costs by September, futures data show. The U.S. economy expanded at a 5 percent annual rate in the third quarter, the biggest advance in 11 years.

The GDP report sent the Dow Jones Industrial Average to a record high. Gold is heading for a consecutive annual loss for the first time since 1998 after a plunge in oil prices reduced the metal™s appeal as an inflation hedge. The dollar™s rally against a basket of 10 currencies to a five-year high cut demand for bullion as a store of value.

Gold futures for February delivery fell 0.2 percent to settle at $1,178 an ounce at 1:43 p.m. on the Comex in New York. Yesterday, the price dropped 1.4 percent, the biggest decline for a most-active contract since Dec. 5. Today, aggregate trading was 39 percent below the 100-day average for this time, according to data compiled by Bloomberg.

Source: Bloomberg

Gold Falls for Second Day as U.S. GDP Growth Crimps Haven Demand

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Gold futures fell for the second straight day as the U.S. economy expanded more than estimated, crimping demand for the precious metal as an alternative investment.

The price dropped 2.2 percent last week on concern that the Federal Reserve will boost interest rates next year. Traders predict a 69 percent chance that the central bank will raise borrowing costs by September, futures data show. The U.S. economy expanded at a 5 percent annual rate in the third quarter, the biggest advance in 11 years. The government had estimated growth in gross domestic product at 3.9 percent.

The GDP report sent the Dow Jones Industrial Average to a record high. Gold is heading for a consecutive annual loss for the first time since 1998 after a plunge in oil prices reduced the metal™s appeal as an inflation hedge. The dollar™s rally against a basket of 10 currencies to a five-year high cut demand for bullion as a store of value.

Gold futures for February delivery fell 0.1 percent to $1,178.60 an ounce at 11:05 a.m. on the Comex in New York. Yesterday, the price dropped 1.4 percent, the biggest decline for a most-active contract since Dec. 5. Today, aggregate trading was 32 percent below the 100-day average for this time, according to data compiled by Bloomberg.

Source : Bloomberg

Dow Average Tops 18,000 for First Time on U.S. Economic Growth

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The Dow Jones Industrial Average rose above 18,000 for the first time as faster-than-forecast growth in gross domestic product boosted confidence in the economy and overshadowed declines in health-care companies.

The Dow average added 66.66 points, or 0.4 percent, to a record 18,026.10 at 4 p.m. in New York. The Standard & Poor™s 500 Index rose 0.2 percent to 2,082.21, also reaching an all-time high. Both gauges have advanced five straight days. The Nasdaq Biotechnology Index slipped 4.6 percent for the biggest decline since April.

It™s been 172 days since the Dow closed above 17,000 on July 3, data compiled by Bloomberg show. That™s the fifth-fastest trip between thousands, with the record being 35 days to 11,000 in May 1999. It took the index almost 5,200 days to go from 1,000 to 2,000 between 1972 and 1987, according to Howard Silverblatt, an index analyst at the New York-based S&P Dow Jones Indices.

The Dow closed at an eight-month low on Oct. 16 before rallying more than 1,882 points, or 12 percent, to to top 18,000.

Source: Bloomberg

Most U.S. Stocks Rise With Dow Average Above 18,000; Bonds Fall

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U.S. stocks rose, with the Dow Jones Industrial Average trading above 18,000 for the first time, as a surge in economic growth overshadowed a drop in health-care shares. Treasuries fell, while the dollar climbed with oil.

The Standard & Poor™s 500 advanced 0.2 percent to a record at 12:11 p.m in New York, while the Dow average added 76.17 points to 18,035.61. The Nasdaq 100 Index retreated 0.3 percent as biotechnology shares in the gauge plunged a second day. The Stoxx Europe 600 Index increased 0.6 percent for its sixth gain in the longest winning streak since April. The yield on 10-year Treasury notes rose five basis points to 2.20 percent. The Bloomberg Dollar Spot Index touched a five-year high as oil appreciated.

The world™s largest economy surged by 5 percent in the third quarter, expanding at the fastest pace since the same period of 2003, as U.S. consumers and businesses spent more than previously estimated. The S&P 500 soared 5.4 percent over the previous four days after the Federal Reserve™s pledge to be patient on the timing of interest-rate increases helped stocks recover from a plunge earlier this month.

Source : Bloomberg

European Stocks Rise to Post Biggest Six-Day Jump in Three Years

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European stocks climbed for a sixth day amid better-than-expected U.S. economic-growth data.

The Stoxx Europe 600 Index rose 0.6 percent to 344.06 at the close of trading. It briefly pared gains after a report showed that sales of new U.S. homes unexpectedly declined in November. The European stocks gauge posted its biggest six-day jump in three years, rising 6.4 percent.

Commerce Department data showed the world™s biggest economy grew in the third quarter more than forecast, expanding at the fastest pace in more than a decade. Gross domestic product increased at a 5 percent annual rate, up from a previously estimated 3.9 percent, according to revised figures released today in Washington. The Dow Jones Industrial Average rose above 18,000 for the first time after the GDP report.

Benchmark stock indexes of Portugal, France and Italy posted some of the biggest gains, rallying more than 1 percent. The volume of Stoxx 600 shares changing hands was 38 percent lower than the 30-day average, data compiled by Bloomberg show.

Source: Bloomberg