Metals Stocks: Gold futures mark first fall in 6 sessions after a stronger-than-expected GDP report

The precious metal also saw prices fall because it has “gained over $300 so far in this rally, and some are undoubtedly looking for an excuse to take some money off the table,” he told MarketWatch.

A reading on U.S. gross domestic product showed the economy grew at a robust 2.9% annual pace in the fourth quarter. GDP expanded at an above-normal rate for the second quarter in a row.

“This report is a green light for more Fed rate hikes,” said Jason Schenker, president of Prestige Economics, in a note. He expects the U.S. central bank to announced an interest rate hike on Feb. 1, as well as a “likely rate hike” on March 22, with both of the rate hikes likely to be 25 basis points.

Still, Wall Street economists predict the U.S. will slow to a crawl in the first quarter, and barely grow at all this year.

“The Fed should meet expectations with a quarter-point hike next week, and this would help keep the bullish flames under the gold market,” said Lundin. A 25-basis point increase would be smaller than the half-percentage point rate hike Fed officials approved last month.

Following the GDP data, the U.S. dollar strengthened against major currencies, also pressuring dollar-denominated prices of gold. The ICE U.S. Dollar Index
DXY,
+0.21%,
a gauge of the dollar’s strength against a basket of rivals, rose 0.2% at 101.88.

Among other economic data released Thursday, orders for manufactured goods jumped 5.6% in December. Economists polled by the Wall Street Journal had forecast a 2.4% increase.