GOLD - JAKARTA. Gold prices rose on Thursday after data showing the U.S. economy grew at its slowest pace in more than a year boosted demand for the safe-haven metal and weakened the dollar.
Spot gold rose 0.4% to $1,803.68 per ounce by 11:49 a.m. ET (1549 GMT). U.S. gold futures for December delivery gained 0.4% to $1,805.40 per ounce.
"Economic growth slowed in the U.S. 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.
Data showed U.S. gross domestic product increased at a 2.0% annualized rate last quarter, as COVID-19 infections flared up, further straining global supply chains and causing shortages of goods such as automobiles.
The U.S. dollar fell 0.7% against a basket of currencies, making gold cheaper to overseas buyers.
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"Gold being considered one of the quintessential hedges against inflationary pressures is an underlying supportive factor for the bullion market moving forward, and we see both gold and silver prices moving higher in the weeks ahead," Meger said.
Spot silver rose 0.3% to $24.12 per ounce.
The European Central Bank left its policy unchanged, as widely expected, on Thursday.
Markets are now focused on the U.S. 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.
"Tapering should already be well and truly discounted, although there is bound to be a short-lived knee-jerk reaction to the Fed's statement next Wednesday – there always is," StoneX analyst Rhona O'Connell said.
Elsewhere, Platinum jumped 1.3% to $1,024.17 per ounce and palladium climbed 1.6% to $1,994.57 per ounce.
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