NEW YORK (MarketWatch) -- Gold futures rose on Thursday after the U.S. government reported the economy grew 3.5% in the third quarter, encouraging investors to embrace more risk than they have over the past week, pressuring the dollar and lifting the value of hard assets. Gold for December delivery was up $9.50, or 1%, to $1,039.80 an ounce. The increase in the gross domestic product was the first in a year and it was the strongest growth in two years. The 3.5% increase matched estimates of economists surveyed by MarketWatch. The increase in the gross domestic product was the first in a year and it was the strongest growth in two years. The 3.5% increase matched estimates of economists surveyed by MarketWatch. Separately, jobless claims fell 1,000 to a seasonally adjusted 530,000 last week, the Labor Department reported Thursday. Economists surveyed by MarketWatch had been looking for first-time claims to fall to 524,000. The dollar edged lower against major rivals after the GDP report. The dollar index (DXY 76.11, -0.31, -0.41%) , which tracks the performance of the greenback against a basket of other major currencies, was down at 76.166 compared with 76.264 ahead of the report. On Wednesday, gold closed nearly $5 lower as the dollar extended gains after disappointing elements in economic data and from a tumble in equities. "Further price falls are quite possible in the short term as gold works off its short term overbought state," analysts at GoldCore said in a note. "However, the primary driver of gold prices in recent months has been investment demand, especially institutional, hedge fund and central bank." The SPDR Gold Trust (GLD 101.70, +0.97, +0.96%) , an exchange-traded fund that invests in gold, rose 1%. Silver for December delivery rose 31 cents, or 1.9%, to $16.56 an ounce. December copper gained 6 cents, or 2%, to $2.99 a pound. December palladium rose $7.20, or 2.3%, to $324.60 an ounce and January platinum slid $25.7, or 2%, to $1,332.6 an ounce.

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