Investing.com - " Gold prices rallied to a four-week high on
Thursday, as weaker-than-forecast U.S. jobs data dampened
expectations that the Federal Reserve will start to taper its
bond-buying program in the coming months.
On the Comex division of the New York Mercantile Exchange, gold
futures for December delivery traded at USD1,343.40 a troy ounce
during U.S. morning trade, up 0.7%.
Comex gold prices rose to a session high of USD1,348.90 a troy
ounce earlier, the strongest level since September 29.
The December contract ended 0.64% lower on Wednesday to settle at
USD1,334.00 a troy ounce.
Gold futures were likely to find support at USD1,310.10 a troy
ounce, the low from October 22 and short-term resistance at
USD1,350.30, the high from September 29.
The U.S. Department of Labor said earlier that the number of
individuals filing for initial jobless benefits declined by 12,000
last week to a seasonally adjusted 350,000.
Analysts had expected U.S. jobless claims to fall by 22,000 to
340,000 last week.
Jobless claims for the preceding week were revised up to a gain of
362,000 from a previously reported increase of 358,000.
The disappointing data underlined expectations that the Fed will
delay tapering its stimulus program until next year amid concerns
over the impact of the 16-day U.S. government shutdown on the
Gold prices have largely tracked shifting expectations as to
whether the Fed would start tapering its USD85-billion-a-month
asset-purchase program by the end of the year.
The central bank is scheduled to meet October 29-30 to review the
economy and assess policy.
Elsewhere on the Comex, silver for December delivery added 0.3% to
trade at USD22.69 a troy ounce, while copper for December delivery
shed 0.3% to trade at USD3.258 a pound.
Stronger-than-expected Chinese manufacturing data failed to offset
concerns over tightening liquidity conditions in the country's
Data released earlier showed that China's HSBC manufacturing index
for October rose to a seven-month high of 50.9, up from a final
reading of 50.2 in September. Economists had expected the index to
tick up to 50.5.
However, sentiment remained weak amid concerns over a cash crunch
in the Chinese financial system after interbank lending rates moved
higher for a second day.
China is the world's largest copper consumer, accounting for almost
40% of world consumption last year.
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