2017.06.3008:02:00UTC+00Gold Losing Luster On Rate Hike Chatter

Gold futures were slightly lower for a second session Friday, after upbeat U.S economic data solidified expectations the Federal Reserve will raise interest rates in the next few months.

It turns out the economy performed much better than one thought in the first part of the year.

U.S. gross domestic product expanded at a 1.4% annual pace in the first quarter, revised figures showed Thursday. That's an improvement from the prior 1.2% reading and double the initial 0.7% estimate.

Even before that data was compiled, the Fed continued to project four more rate hikes by year's end 2018.

Gold was down $2.40 at $1243 an ounce this morning, trimming modest gains from earlier in the week.

A stronger dollar also weighed on gold, as tame European inflation data may convince the European Central Bank to maintain stimulus.

Traders are likely to keep an eye on reports on personal income and spending, consumer sentiment and Chicago-area business activity for more clues on the health of the economy

China's official manufacturing PMI rose to 51.7 in June from 51.2 in May, marking the quickest pace of expansion in three months and adding to signs of a stabilizing economy. Non-manufacturing activity also expanded at a faster pace in June.