Gold dulls as encouraging claims report weighs
New York (Apr 2) Gold prices dipped Thursday, giving up a little of the prior session’s sizable advance, though the yellow metal held above the $1,200 level.
A better-than-expected reading on jobless claims dented haven demand for gold and other safety places, with gold for June delivery GCM5, -0.30% edging down to a session low after that figure. Investors also await a report on factory orders that is due later Thursday, as well as Friday’s monthly jobs report.
June gold was last down $5.30, or 0.4%, $1,202.90 an ounce, while May silver SIK5, -1.43% shed 28 cents, or 1.6%, to trade at $16.78 an ounce.
On Wednesday, June gold settled 2.1% higher, reclaiming the $1,200 mark as a weaker dollar, tepid economic data and a selloff in U.S. stocks SPX, +0.59% provided a boost.
The dollar DXY, -0.67% was dipping again Thursday against its major rivals, but gold still lost ground. A lower greenback can help dollar-denominated commodities like gold as it makes them less expensive for holders of other currencies.
Gold could be volatile as Friday’s jobs report nears, and it needs to stay above the $1,170 level in order for its recent uptrend to continue, said Naeem Aslam, chief market analyst at AvaTrade in a note early Thursday.
In other economic news on Thursday, U.S. trade figures indicated a stronger dollar and a weak global economy are hurting American companies.
In other metals trading, May copper HGK5, -0.27% lost 2 cents, or 0.6%, to $2.74 a pound. July platinum PLN5, -0.52% fell $8.60, or 0.7%, to $1,157.40 an ounce, while June palladium PAM5, +0.75% dropped $3.30, or 0.4% to $745.55 an ounce.