NEW YORK: Gold prices rose on Thursday, as demand for the safe-haven asset was lifted by a softer dollar and data showing the US economy grew at its slowest pace in more than a year. Spot gold rose 0.3% to $1,801.43 per ounce by 2:05 pm ET (1805 GMT). US gold futures settled up 0.2% at $1,802.6.
"Economic growth slowed in the US and that would support the gold market in the perspective that the Federal Reserve would be less likely to either taper asset purchases at a quicker pace or the outlook for higher interest rates would be curtailed," said David Meger, director of metals trading at High Ridge Futures.
US gross domestic product increased at a 2.0% annualized rate last quarter, as a resurgence in COVID-19 cases further stretched global supply chains, leading to shortages of goods like automobiles that slammed the brakes on consumer spending. The US dollar fell 0.6% against a basket of currencies, a one-month low, making gold cheaper to overseas buyers. Spot silver rose 0.1% to $24.07 per ounce.
The European Central Bank left its policy unchanged, as widely expected, on Thursday. Markets are now focused on the US Federal Reserve's meeting on Nov. 2-3, which would be more crucial for gold after chief Jerome Powell's recent comments on tapering asset purchases. Platinum rose 1% to $1,020.97 per ounce. Palladium jumped 1.5% to $1,992.81 per ounce.