Investing.com - Gold futures extended losses to hit the lowest level in six weeks on Thursday, after data showed that U.S. unemployment benefits remained near a post-recession bottom last week.
On the Comex division of the New York Mercantile Exchange, gold for December delivery fell to a session low of $1,286.90, the weakest level since June 19, before trimming losses to last trade at $1,289.50 during U.S. morning hours, down 0.57%, or $7.40.
Futures were likely to find support at $1,276.20, the low from June 19 and resistance at $1,314.60, the high from July 29.
The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits increased by 23,000 last week to 302,000 from the previous week’s total of 279,000, which was the lowest in 14 years.
The four-week moving average was 297,250, the first time the monthly average has fallen below 300,000 since April 2006 and reflects an eight-year low.
The monthly average is seen as a more accurate gauge of labor trends because it reduces volatility in the week-to-week data.
On Wednesday, the Federal Reserve tapered its monthly bond-buying program by another $10 billion, staying on course to end the program in October, and gave an upbeat assessment of the economy at the conclusion of its two-day meeting.
A Commerce Department report released Wednesday showed that the U.S. economy grew at a 4% annualized rate in the second quarter, after contracting by 2.1% in the first three months of the year.
Investors now turned their attention to Friday’s U.S. jobs report for July, which was expected to indicate that the recovery in the labor market is continuing.
Also on the Comex, silver for September delivery tacked on 0.13%, or 2.6 cents, to trade at $20.62 a troy ounce.
Elsewhere in metals trading, copper for September delivery inched up 0.25%, or 0.8 cents, to trade at $3.250 a pound.