Gold Prices Close Lower But Well Off Worst Levels

(RTTNews) - Gold prices moved lower over the course of the trading day on Tuesday but ended the session well off their worst levels.

After hitting a low of $1,179.30 an ounce, gold for December ended the day down $2.90 at $1,187.90 an ounce. The price of gold climbed $12.40 to $1,190.80 an ounce on Monday.

The drop by the price of gold came as upbeat U.S. economic data reinforced expectations of an increase in interest rates and a higher dollar.

The Commerce Department released a report this morning showing a bigger than expected upward revision to the pace of GDP growth in the third quarter.

The report said GDP climbed by 3.2 percent in the third quarter compared to the initially estimated 2.9 percent increase. Economists had expected the pace of growth to be upwardly revised to 3.0 percent.

The upwardly revised GDP growth in the third quarter compares to the 1.4 percent increase seen in the second quarter and marks the strongest growth in two years.

A separate report from the Conference Board showed a much bigger than expected improvement in consumer confidence in the month of November.

The Conference Board said its consumer confidence index surged up to 107.1 in October from an upwardly revised 100.8 in October. Economists had been expecting the index to climb to 101.0.

With the bigger than expected increase, the consumer confidence index reached its highest level since hitting 111.9 in July of 2007.