Gold is trading in the red zone

The price of gold fell slightly updating yesterday's low, move caused by the strengthening of the US currency after positive data on US GDP and the labor market.

The dollar index, which measures the dollar against vs a basket of currencies of six countries, rose to a session high of 95.62 after stronger than expected US GDP data and the number of initial applications for unemployment benefits. As is known, the strengthening of the US currency negatively affects the gold, making it more expensive for holders of foreign currencies

The Commerce Department said, the US economic growth was less sluggish than previously thought in the second quarter, as exports rose more than imports, and the companies raised investment, giving encouraging signs for the economic outlook. GDP grew by 1.4 per cent per annum. The result was compared with the rate of 1.1 per cent, which it reported last month, above analysts' expectations.

The Labor Department reported that initial applications for state unemployment benefits rose by 3,000 and reached a seasonally adjusted 254,000 for the week ended September 24th. Economists had expected the figure at 260 000. The four-week moving average of initial claims fell by 2250 to 256 000. Continuing claims fell by 46,000 to 2.062 million in the week ending 17 September.

The cost of the October futures for gold on the COMEX fell to $ 1317.4 per ounce.