2023.01.2618:13:00UTC+00Gold Prices Give Back Ground Following Upbeat Economic Data

After closing higher for five consecutive sessions, the price of gold gave back ground over the course of the trading day on Thursday.

Gold for February delivery slid $12.60 or 0.7 percent to $1,930 an ounce after rising $7.20 or 0.3 percent to a nine-month closing high of $1,942.60 an ounce in the previous session.

The pullback by the price of gold came as some upbeat U.S. economic data reduced the precious metal's safe-haven appeal.

An uptick by the value of the U.S. dollar also weighed on gold prices, with the U.S. dollar index inching up 0.22 points or 0.2 percent to 101.87.

Gold prices gave back ground following the release of a Commerce Department report showing U.S. economic activity surged by more than expected in the fourth quarter of 2022.

The report said real gross domestic product shot up by 2.9 percent in the fourth quarter after spiking by 3.2 percent in the third quarter. Economists had expected GDP to jump by 2.6 percent.

The stronger than expected GDP growth reflected increases in private inventory investment, consumer spending, government spending, and non-residential fixed investment.

Meanwhile, the positive contributions were partly offset by decreases in residential fixed investment and exports.

The Labor Department also released a report showing initial jobless claims unexpectedly dipped to a nine-month low in the week ended January 21st.

Separate Commerce Department reports also showed a spike in durable goods orders and a continued increase in new home sales.