Gold futures settled at nearly 1 percent lower at $1,313 on Wednesday as unexpectedly strong U.S. economic growth stirred fears that the U.S. Federal Reserve could be a step closer to cutting back its stimulus measures.
Spot gold was down 1.1 percent at $1,312 an ounce, holding onto losses after the latest Fed policy statement. It traded as low as $1,306.34, the weakest level in more than a week, earlier in the day. U.S. gold futures settled $11.80 lower at $1,313 an ounce after the Federal Reserve said the economy is still in need of support, offering no indication that a reduction in the pace of its bond-buying stimulus program is imminent.
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Having earlier risen almost 1 percent, gold turned lower after U.S. government data showed gross domestic product grew at a better-than-expected 1.7 percent annual rate in the second quarter. George Gero, vice president at RBC Capital Markets, said that gold was pressured by higher Treasury yields, seen as a gauge of short-term interest rates, a stronger economic outlook and uncertainty related to the Fed statement.