Gold slides as U.S. jobless claims beat expectations
Published May 09, 2013 01:28PM ET
Stimulus tools, such as the Fed's monthly USD85 billion bond-buying program, weaken the greenback to spur recovery, a recipe for climbing gold prices.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were down 0.33% at USD1,468.85 a troy ounce in U.S. trading on Thursday, up from a session low of USD1,458.85 and down from a high of USD1,474.85 a troy ounce.
Gold futures were likely to test support USD1,440.55 a troy ounce, Tuesday's low, and resistance at USD1,475.55, Wednesday's high.
The Department of Labor reported earlier that the number of individuals filing for initial jobless claims in the U.S. last week fell by 4,000 to 323,000, defying expectations for an increase of 8,000 to 335,000.
The news sparked demand for the dollar by fueling sentiments the Fed may closer to considering a timeframe to wind down dollar-weakening stimulus programs.
Gold and the dollar tend to trade inversely with one another
Last week, the Bureau of Labor Statistics reported that U.S. economy added 165,000 nonfarm payrolls in April, up from 138,000 in March, whose figure was revised up from 88,000.
April's figures far outpaced analysts' forecasts for a 145,000 figure.
Elsewhere on the Comex, silver for July delivery was down 0.06% at USD23.913 a troy ounce, while copper for July delivery was down 1.01% and trading at USD3.337 a pound.
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Written By: Investing.com
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