MTECHTIPS:-Gold slides to session lows after upbeat U.S. GDP revision

MTECHTIPS:-Gold slides to session lows after upbeat U.S. GDP revision

MTECHTIPS-Gold prices edged lower in North American trade on Thursday, after data showed that the U.S. economy grew twice as fast as the government originally reported, giving investors reason to hope the Federal Reserve will stick with its plan to hike rates. Comex gold futures were at $1,242.98 a troy ounce by 8:45 AM ET (1245 GMT), down $5.95, or around 0.5%. Gold ended higher on Wednesday to notch its fifth gain in six sessions. Also on the Comex, silver futures ticked down 8.5 cents, or roughly 0.5%, to $16.64 a troy ounce. The third estimate of first quarter growth domestic product showed growth of 1.4%, revised up from the previous reading of a 1.2% expansion and double the initial 0.7% estimate. Real consumer spending for the first three months of 2017 was also revised up more than estimated to 1.1%, from the prior reading of 0.6%. The solid data backed expectations for more U.S. interest rate hikes this year. The Federal Reserve hiked interest rates earlier this month and left the door open for further increases later in the year, though a batch of mixed economic data recently has had investors wondering whether the Fed would be able to stay on its planned tightening path. Futures traders are pricing in around a 20% chance of a hike at the Fed’s September meeting, according to Investing.com’s Fed Rate Monitor Tool. Odds of a December increase was seen at about 45%. The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. Among other precious metals, platinum lost 0.9% to $916.15, while palladium shed 0.1% to $853.52 an ounce
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