Precious-Gold was little changed on Friday as investors weighed the improved in U.S. economic data and the escalating geopolitical tensions in Ukraine.
Data released on Thursday showed that the number of initial jobless claims fell more than forecast last week to 319,000 from a revised of 345,000, adding to signs conditions of the labor market are strengthening.
The most recent data suggest that recovery in the world’s biggest economy is gaining traction despite the withdrawal of bond purchases by the Federal Reserve.
The OECD predicted this week the U.S. to post a faster growth in the second quarter and in the rest of the year after the end of the harsh cold winter weather.
The economy will expand 3.9 percent this quarter while will average 2.6 percent this year, the OECD said.
This week, Fed Chair Janet Yellen said recent data has showed “solid growth” in the second quarter, raising expectations of faster expansion this year. But she hinted that the Fed must continue to endorse the economy as inflation and employment indicators are still far from the central bank’s target.
Accordingly, the U.S. dollar resumed its advance for a third straight session versus a basket of major currencies to hover around 79.150, after hitting a peak of 79.53, according to the dollar index.
However, gold has found some support from the unrest in Ukraine, where Pro-Russian separatists in Eastern Ukraine ignored calls from Russian President Vladimir Putin to postpone a vote on secession and mentioned the vote will be held on Sunday.
It is worthwhile to mention the shiny metal has gained around 7 percent this year from haven demand due to escalating violence in Ukraine.
However, the metal is set for another weekly decline, as it currently trading below $1300 around $1291.25 an ounce after hitting a high of $1292.63 and a low of $1288.18.
The fall above Daily SMA 200 located at $1298 levels forced the metal to record its biggest one-day drop in three weeks on Wednesday.
Crude oil for June’s delivery rose to trade around $100.85 a barrel after touching a low of $100.21.