Gold Futures Settle Lower As Dollar Moves Up
Gold futures ended lower on Tuesday, extending recent losses, as the dollar advanced against most of its peers amid worries the new coronavirus strain that has forced Britain to shut down most of its businesses would slow down the pace of economic recovery.
News about the U.S. Senate passing a stimulus bill helped limit the downside of the yellow metal.
The dollar index climbed to 90.71 in late morning trades. It was last seen at 90.68, up 0.71% from previous close.
Gold futures for February ended down $12.50 or about 0.6% at $1,870.30 an ounce.
Silver futures for March ended lower by $0.844 or 3.2% at $25.535 an ounce, while Copper futures for March settled at $3.5200 per pound, down $0.0575 or 1.6% from previous close.
Revised data released by the Commerce Department on Tuesday showed the U.S. economy grew by slightly more than previously estimated in the third quarter of 2020.
The report showed the spike in gross domestic product in the third quarter was upwardly revised to 33.4% from the previously reported 33.1%. Economists had expected the jump in GDP to be unrevised.
A report from the National Association of Realtors showed existing homes sales in the U.S. tumbled by 2.5% to an annual rate of 6.69 million in November after jumping by 4.4% to a revised rate of 6.86 million in October.
Economists had expected existing home sales to slump by 2.2% to a rate of 6.70 million from the 6.85 million originally reported for the previous month.
According to a report released by the Conference Board, consumer confidence in the U.S. has unexpectedly decreased in the month of December.
The Conference Board said its consumer confidence index slid to 88.6 in December from a downwardly revised 92.9 in November. Economists had expected the consumer confidence index to inch up to 97.0 from the 96.1 originally reported for the previous month.
The U.S. Senate voted 91-7 late Monday to approve both the coronavirus aid package and a full-year spending bill that will fund federal government activities through September 2021.
The House of Representatives passed the package earlier on Monday. The bill now heads to the White House, where President Trump is expected to sign it into law.
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