In NEW YORK story headlined, "COMEX gold retreats on news of booming U.S. Q3," please read in paragraph 4, "December gold ended $2.60 lower at $384.40 an ounce, falling to $382.50 from a $392.00 high." instead of " ... from a $292.00 high." (corrects December gold contract's session high)
A corrected version follows.
NEW YORK, Oct 30 (Reuters) - COMEX gold retreated Thursday, prevented from setting a new high as stunning news that the U.S. economy tasted boom times again last quarter shored up the dollar and lured investors out of safe-havens.
The Commerce Department report that gross domestic product surged an annualized 7.2 percent in the third quarter, its fastest pace in 19 years, was badly timed for gold bulls, who thrive on worries about the economy and had chased gold futures up $12 since Wednesday to within reach of the 2003 peaks.
"We didn't see a really strong response to the GDP numbers," said David Rinehimer, head of commodities research at Citigroup Global Markets. "But during course of the day the dollar gained against the euro and yen and that probably added a little more selling into the gold.
December gold ended $2.60 lower at $384.40 an ounce, falling to $382.50 from a $392.00 high.
Spot gold was closed at $383.40/4.25, down from Wednesday's $386.40/6.90. London bullion dealers fixed the afternoon reference price at $386.50.
GDP came in even better than the optimistic average forecast for a 6.0 percent annualized quarterly gain. It more than doubled the second quarter's 3.3 percent expansion rate.
The clearest evidence yet that the economy has escaped more than two years of recession and sluggish growth steadied the dollar before gold could revisit the Sept. 25 $394.80 high. This tested the patience of funds anticipating a break of $400.
"We had some pretty wide swings over past couple of days and the past couple of weeks," Rinehimer said. "It looks like another failed test, which is probably prompting some long liquidation."
Gold's climb overnight added to Wednesday's $3.60 COMEX gain as dollar weakness against the euro and yen prompted speculators to bet that overseas investors would take advantage of cheaper local-currency gold prices.
"There are competing forces -- the huge current account deficit on the dollar bear side," said James Pogoda, precious metals vice president at Mitsubishi International Corp. "If the U.S. leads a global recovery and if we see money coming into U.S. securities, it's going to bolster the dollar and we'll get shoved around in between."
December silver eased 0.7 cent to $5.135 an ounce, trading from $5.115 to $5.21.
Spot silver was last quoted at $5.11/13, off from $5.12/14 late Wednesday. The fix was $5.185 an ounce.
NYMEX January platinum ended off 40 cents at $757.00 an ounce, pulling back from another contract high at $766.80. Spot prices rallied deeper into levels not seen in 23 years. Spot platinum closed at $757.00/762.00.
The dollar's weakness against the yen has encouraged continued Japanese buying. At the same time, traders fear that the strong rand will prevent South Africa from making production targets, just as a stronger economy spurs demand from auto makers, who use the metal in catalytic converters.
"With the specs still on the bid and the dollar's weakness negating some of the effects of higher prices, there seems to be little in the way of resistance, leaving $800 a distinct possibility," wrote James Moore of TheBullionDesk.com.
December palladium rose $2.50 to $209.00 an ounce. Spot palladium fetched $206.50/212.50.