Gold price back on the defensive after US growth surprise

On Monday gold was on the back foot with December futures trading on the Comex market in New York exchanging hands at $1,262.00 an ounce in early morning trade, down more than $7 from Wednesday's close.

Gold has been on the defensive since the start of October and is down $50 for the month after falling to a four month low of $1,243 on October 7.

Data released on Friday showed the pace of US economic growth picked up sharply in the third quarter, boosting chances of a rate hike before the end of the year. Higher interest rates  in the world's largest economy would underpin the dollar which usually moves in the opposite direction of the gold price.

US GDP expanded at a 2.9% clip, up from 1.4% in the previous three months, and above consensus forecasts of a 2.6% rate of growth.

Year to date the metal is still managing gains of nearly 20% or more than $200 an ounce, one of its best annual performances since 1980.