Investing.com - Gold futures trimmed gains on Thursday, coming
off the highest levels of the session after a report showed the
number of people who filed for unemployment assistance in the U.S.
fell more-than-expected last week.
On the Comex division of the New York Mercantile Exchange, gold
futures for June delivery traded at USD1,384.05 a troy ounce during
U.S. morning hours, up 1.2% on the day.
Comex gold prices rose by as much as 2.1% earlier in the session to
hit a daily high of USD1,396.55 a troy ounce.
Gold futures were likely to find support at USD1,337.85 a troy
ounce, the low from May 20 and near-term resistance at USD1,413.05,
the previous session's high.
Gold prices trimmed gains after the U.S. Department of Labor said
the number of individuals filing for initial jobless benefits in
the week ending May 18 fell by 23,000 to a seasonally adjusted
340,000, compared to expectations for a decline of 18,000 to
Jobless claims for the preceding week were revised up to 363,000
from a previously reported increase of 360,000.
Futures were sharply higher earlier in the session as investors
continued to speculate on the direction of monetary policy in the
world's largest economy.
Moves in the gold price this year have largely tracked shifting
expectations as to whether the U.S. central bank would end its
bond-buying program sooner-than-expected.
Federal Reserve Chairman Ben Bernanke said on Wednesday that a
decision to scale back the central bank's asset purchase program
could be taken in the "next few meetings" depending on economic
Bernanke had earlier said in prepared remarks to Congress that a
premature tightening of monetary policy carried substantial risks
to the economic recovery.
His comments at first dampened any thought that the central bank
will ease back on its easy monetary policy, which has been
beneficial to dollar-denominated commodities.
Meanwhile, Wednesday's minutes from the U.S. central bank's May
meeting showed a "number" of policymakers were prepared to taper
bonds purchases as soon as June.
Elsewhere on the Comex, silver for July delivery fell 0.6% to trade
at USD22.33 a troy ounce, while copper for July delivery plunged
3.3% to trade at USD3.270 a pound.
Copper prices came under pressure after data showed that
manufacturing activity in China contracted for the first time in
seven months in May.
China's HSBC Flash Purchasing Managers Index, the earliest
indicator of the country's industrial activity, fell to a
seven-month low of 49.6 in May from a final reading of 50.4 in
The data added to lingering concerns over a slowdown in the world's
largest copper consumer.
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