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Gold Trims Rally by End of Week

April 26, 2013 at 23:02 by Vladimir Vyun

Gold trimmed its biggest weekly gain in 15 months as US gross domestic product grew last quarter less than was expected, driving commodity prices lower. GDP expanded 2.5 percent in the first quarter of 2013, while the consensus forecast was at 3.1 percent. Analysts speculated that the data means no fear of inflation, making gold unnecessary as an inflation hedge.

Gold was rallying on speculations that falling prices spurred physical demand. Of course, however big the rally was, it was nothing compared to the huge slump the precious metal has experienced earlier. The metal may remain under pressure amid rumors that central banks reduce buying.

June futures for delivery of gold fell $8.4 (0.57 percent) to close at $1,453.60 per troy ounce on COMEX today.

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