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Gold prices continued to decline today , reaching a six-week low at the same time , which was due to pressure from the stronger dollar and signs of improvement in the U.S. economy. Today's report from the U.S. Commerce Department showed that consumer spending late last year increased more significantly than previously thought , which supported the economy before the recent disruptions caused by severe weather conditions this winter. Reported gross domestic product , the broadest indicator of goods and services produced in the economy , in the 4th quarter of 2013 increased by 2.6 % compared with the same period last year. This value is higher than the second assessment that GDP grew by 2.4 %, but below economists' forecast for growth of 2.7% . GDP growth in the 4th quarter after growth slowed to 4.1% in the 3rd quarter, but the indicator base strength of the economy has risen. Growth in real final sales , which do not take into account the volatility of stocks subject , accelerated to 2.7% from 2.5% in the 3rd quarter. Last GDP report testified that consumer spending, which account for around two thirds of GDP , grew at the fastest pace since the end of 2010. In the 4th quarter, consumer spending rose by 3.3% , whereas previously assumed their growth by 2.6%. In the 3rd quarter , they rose by 2%.
Were also important labor market data , which showed that the number of initial claims for unemployment benefits (a measure of layoffs throughout the economy ) decreased by 10,000 and totaled a seasonally adjusted 311,000 in the week ended March 22. Economists had forecast 326,000 new claims for the week . The number of initial claims for the week ending March 15 was slightly revised to 321,000 from 320,000 . The four-week moving average of initial claims fell to 317,750 last week (the lowest level since last September)
Note that gold is under heavy selling pressure in recent sessions , as market participants and institutional investors have reduced long positions on expectations that the Fed may raise interest rates earlier than previously thought . This assumption arose after Fed Chairman Janet Yellen said last week that the bank may start to raise interest rates after about six months after the completion of bond-buying program , which is expected to happen this fall.
The cost of the April gold futures on the COMEX today dropped to $ 1297.00 per ounce.
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