London — Gold prices fell on Thursday as the dollar gained ground after data showed strong growth in the US, but losses were capped by rising security concerns created by tension on the Korean peninsula. The US currency rose after data showed the US economy grew at an annual 3% in the second quarter, making dollar-denominated gold more expensive for holders of other currencies. Spot gold was down 0.1% at $1,306.9/oz at 10.51am GMT, but on track for a near 3% rise this month. US gold futures eased 0.1% to $1,312.00. Gold prices are up about 13% so far this year. Some of that gain came after North Korea fired a missile over Japan. That was followed two days later by South Korea’s air force conducting an exercise with two US nuclear-capable bombers above the Korean peninsula on Thursday. "The situation in Korea encouraged interest in gold and the weaker dollar has lifted gold," Oxford Economics commodities analyst Dan Smith said. "We don’t know what’s going to happen with geopolitics, ...
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