Gold approached this week's nine-month low in early trading this Friday. Forbes reported that December Comex gold was last down $2.20 at $1,219.70 an ounce and Spot gold was last quoted down $2.80 at $1,219.50. December Comex silver last traded up $0.062 at $17.505 an ounce.
The rallying U.S. dollar and economy continues to limit gold's attractiveness as an investment instrument. Accordingly, buying activity has declined for both gold and silver.
The losses that gold has experienced come on the back of a continued expansion in U.S. GDP. Bloomberg Businessweek reported that GDP grew at a 4.6 percent annualized rate since last quarter, higher than the earlier estimate of 4.2 percent. One measure of inflation showed that it climbed at a rate of two percent.
The strengthening economy and low inflation has led many analysts to predict that Bullion will experience its first quarterly loss. Adding to this are the bets that continued recovery will cause the Federal Reserve to boost interest rates. According to Businessweek, the Bloomberg Dollar Spot Index rose 0.1 percent against a basket of currencies.
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