Gold futures capped the longest slump in four weeks after a report showed the U.S. economy in the first quarter contracted less than estimated, supported by a bigger gain in consumer spending.

Gross domestic product fell at a 0.2 percent annualized rate, revised from a 0.7 percent drop, government data showed Wednesday. Household consumption grew at a 2.1 percent rate, up from the estimate of 1.8 percent. After the report, gold dropped as much as 0.7 percent to $1,168.10 an ounce, a two-week low.

The metal has slumped this week as the odds increased that the Federal Reserve will boost its benchmark interest rate following gains in the U.S economy. On Tuesday, government data showed purchases of new homes jumped the most in seven years, while a gold put giving owners the right to sell July futures at $1,175 surged 52 percent.

Gold futures for August delivery dropped 0.3 percent to $1,172.90 at 1:43 p.m. on the Comex in New York, a fourth straight decline and the longest slump since May 27.

Source: Bloomberg