Gold down to $1290 on U.S. Growth Optimism

Gold held at lower levels hit overnight on Thursday, pressured by the U.S. Federal Reserve cutting its bullion-friendly stimulus measures further and outflows from the world’s biggest gold fund resumed after a 1-1/2 week pause.  Spot gold was flat at $1,290.96 an ounce by 0026 GMT, after losing 0.4 percent on Wednesday.

The Fed looked past a dismal reading on first quarter U.S. growth and gave a mostly upbeat assessment of the economy’s prospects as it announced another cut in its massive bond-buying stimulus.

Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 4.19 tonnes to 787.95 tonnes on Wednesday – its biggest outflow since April 16.

CNBC

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