Gold falls on strong economic data

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Associated Press

Posted on December 2, 2013 at 4:00 PM

Updated Monday, Dec 2 at 4:02 PM

Gold is slumping after a pair of reports indicated that the U.S. economy is strengthening.

U.S. manufacturing grew in November at the fastest pace in 2½ years as factories ramped up production, according to a survey from the Institute for Supply Management. Separately, U.S. developers boosted construction spending in October at the fastest pace in more than four years, the Commerce Department said.

The news gave the dollar a boost. Gold typically falls when the U.S. currency rises, as traders generally buy the metal as a hedge against declines in the dollar.

Gold for February delivery fell $28.50, or 2.3 percent, to $1,221.90 an ounce.

Other metals also fell.

In agricultural trading, wheat and soybeans fell, while corn was flat. In energy trading, the price of oil rose.

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