Gold prices fall on US GDP data, expectation of Fed decisions

Gold prices fell on January 27 morning, while investors evaluate the first data on US GDP and suggest action by the Federal Reserve System (Fed), Report informs referring to stock quotes.

The price of February futures for gold on the New York Comex exchange fell by $8.3, or 0.43%, to $1,921.7 per troy ounce. March silver futures fell 0.31% to $23.945 an ounce.

US GDP in the fourth quarter, according to the first estimate, grew by 2.9% on an annualized basis (if GDP grew at the same rate for four consecutive quarters), while analysts had forecast growth of only 2.6%.

Gold is sensitive to such data, as it is taken into account by the Fed when making monetary policy decisions. The signals from the Fed affect the dollar, to which gold is sensitive. Hawkish sentiment is positive for the dollar and negative for gold, as in this case the precious metal becomes less available for purchase in other currencies.