Gold Falls Below $1,200 to 34-Month Low on U.S. Economy

Gold futures tumbled below $1,200 an ounce, extending a slump to a 34-month low, as U.S. economic data topped estimates by analysts, eroding the metal’s appeal as a store of value.

In May, consumer spending rebounded and pending home sales jumped to the highest since 2006, while jobless claims fell last week, reports showed today. Assets in the SPDR Gold Trust, the world’s biggest exchange-traded product backed by the metal, have slumped 28 percent this year to the lowest since February 2009 amid an equity rally and muted inflation.