Gold prices fell on Thursday for the second straight day on a rising dollar, causing investors to lose interest in the precious metal, yet reinforcing confidence in steady U.S. economic growth.
The dollar made gains for the third day against six major currencies, including the British pound and euro amid mixed data on the U.S. economy. A report released by the Commerce Department said the economy grew at a 4.9 percent annual rate in the third quarter, its fastest pace in four years.
Gold generally moves in the opposite direction of the U.S. currency. Prior to today, gold gained26 percent this year as the dollar index dropped 7.1 percent.
Gold futures for February delivery fell $2.20, or 0.3 percent, to $803.20 an ounce on the Comex division of the New York Mercantile Exchange.
For now, we expect dips to remain supported as investors continue to factor some safe-haven protection into their portfolios, said James Moore, an analyst at TheBullionDesk.com.
However, year-end long liquidation is again likely to be a feature over the next two weeks, Moore said in a research note. He estimated the metal's resistance at a range of $805 to $812 an ounce.
The dollar index, which tracks the performance of the greenback against a basket of other major currencies, rose 0.2 percent to 77.715.