Gold Drops to 3-Week Low on Concern Fed Will Taper, Dollar Rally
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Gold fell to a three-week low as U.S. economic expansion fueled speculation that the Federal Reserve will curb monetary stimulus, and as an unexpected cut in European interest rates send the dollar surging.
The economy in the U.S. expanded in the third quarter at a faster pace than forecast and jobless claims fell to 336,000 in the week ended Nov. 2 from 345,000 in the previous period, separate government reports said today. The Bloomberg U.S. Dollar Index reached a seven-week high after the European Central Bank cut its main refinancing rate to a record low.