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Gold Drops as U.S. Growth Signs Fuel Concern Fed to Cut Stimulus

Gold fell for the third time in four days as signs of a rebounding U.S. economy revived concern that the Federal Reserve will scale back monetary stimulus, eroding the appeal of the precious metal as a store of value.

Orders for durable goods increased more than forecast in April by 3.3 percent, the Commerce Department said today. Economists in a Bloomberg survey expected a 1.5 percent increase. Fed Chairman Ben S. Bernanke said May 22 that the central bank may slow the $85 billion a month of Treasury and mortgage debt purchases if the economy shows sustained signs of improvement. Gold has declined 17 percent this year.