Investing.com - Gold prices extended overnight gains during North America's session on Thursday, after data showed that orders for U.S. manufactured capital goods unexpectedly fell in September.
Total durable goods orders, which include transportation items, dropped 0.1% last month, the Commerce Department said, compared to economists' expectations for a gain of 0.1%.
Core durable goods orders, which exclude volatile transportation items, rose 0.2% last month, in line with forecasts.
Durable goods excluding defense and aircrafts slumped 1.2% in September, compared to expectations for a 0.3% gain.
A separate report released at the same time showed that the number of people who filed for unemployment assistance in the U.S. last week fell less than expected, but remained in territory associated with a healthy labor market.
The number of individuals filing for initial jobless benefits decreased by 3,000 last week to 258,000, the Department of Labor said. Analysts expected jobless claims to fall by 6,000 to 255,000 from the previous week’s total of 261,000.
Odds for a Federal Reserve rate hike before the end of the year weakened slightly in wake of the data. Market participants priced in around a 74% chance of a rate increase in December, according to Investing.com's Fed Rate Monitor Tool, down from 78% ahead of the data.
Gold for December delivery on the Comex division of the New York Mercantile Exchange tacked on $6.55, or 0.52%, to $1,273.15 a troy ounce by 8:45AM ET (12:45GMT).
A day earlier, the yellow metal lost $7.00, or 0.55%, after touching a three-week high of $1,277.50.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was last at 98.65 early Thursday, within sight of a nine-month high of 99.09 touched earlier this week.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Also on the Comex, silver futures for December delivery tacked on 7.1 cents, or 0.4%, to $17.69 a troy ounce during morning hours in London, while copper futures rose 1.1 cents, or 0.55%, to $2.157 a pound.