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Gold Prices Sink as US Economy Improves

May 28, 2014 at 1:31 by Vladimir Vyun

Gold sank yesterday and continued to fall today due to a set of positive reports that was released in the United States. There were quite a few economic releases yesterday, including data about durable goods orders, home prices, manufacturing, and consumer confidence. All of them were good, and the majority of them were better than analysts have expected.

The data suggests that economic growth in the United States is gaining momentum. This increases chances for monetary tightening from the Federal Reserve in the near future and bolsters strength of the dollar, making gold weaker in the same time. Prices for bullion plunged 2.2 percent yesterday — the biggest slump this year.

Futures for delivery of gold in August dropped $4.3 (0.34 percent) to $1,261.4 per troy ounce as of 1:22 GMT on COMEX today.

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