Gold Falls on GDP, Trimming Biggest Weekly Gain in 15 Months

Gold futures fell, trimming the biggest weekly gain in 15 months, as the U.S. economy expanded less than forecast, driving commodities lower and crimping demand for the precious metal as a hedge against inflation.

Gross domestic product rose at a 2.5 percent annual rate, Commerce Department figures showed today. The median estimate of 86 economists surveyed by Bloomberg called for a 3 percent gain. This week, gold jumped 4.2 percent, the most since late January 2012, as demand for coins, bars and jewelry surged following last week’s plunge in futures. The Standard & Poor’s GSCI index of 24 raw materials slumped as much as 1.1 percent, led by industrial metals.