Gold prices decline on strong data points

                   

                   Gold prices traded lower in the early part of Friday’s Asian session amid a raft of encouraging U.S. and Asian economic data points. 

On the Comex division of the New York Mercantile Exchange, gold futures for October delivery fell 0.62% to USD1,403.80 per troy ounce in Asian trading Friday. The October contract settled down 0.42% at USD1,412.60 per ounce on Thursday. 

Gold futures were likely to find support at USD1,389.50 a troy ounce, Monday's low, and resistance at USD1,433.50, Wednesday's high. 

In U.S. economic news out Thursday, the U.S. Commerce Department said U.S. GDP grew 2.5% in the second quarter, well above the initial reading that showed growth of 1.7%. Economists expected the revision to show growth of 2.2%. Consumer spending grew 1.8% after rising 2.3% in the first quarter. 

The Labor Department said initial claims for jobless benefits fell by 6,000 to 331,000 last week. Economists expected first-time claims to come in at 332,000.The less volatile four-week moving average rose by 750 to 331,250. 

Strong data points from the world’s largest economy reinvigorated speculation the Federal Reserve will move to begin tapering its quantitative easing program, perhaps as soon as September. 

Gold was also pressured as investors continued to flee to the U.S. dollar as a safe-haven play amid the possibility of a U.S.-led military strike against Syria’s government following its alleged use of chemical weapons, although an attack seemed less imminent on Thursday due to complaints from U.S. lawmakers that they have not been properly consulted. 

Elsewhere, silver for December delivery slipped 1.55% to USD23.767 per ounce while copper for December delivery rose 0.25% to USD3.262 per ounce. - investing.com