Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Gold falls as weak jobless claims report sparks profit taking

Published 01/31/2013, 02:10 PM
Updated 01/31/2013, 02:11 PM
Investing.com - Gold prices fell on Thursday after U.S. weekly jobless claims came in higher than expected last week, dampening demand for risk-on assets such as gold, which was ripe for profit taking.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were down 1.16% at USD1,662.15 a troy ounce in U.S. trading on Thursday, up from a session low of USD1,658.75 and down from a high of USD1,681.75 a troy ounce.

Gold futures were likely to test support USD1,653.35 a troy ounce, Monday's low, and resistance at USD1,684.35, Wednesday's high.

The U.S. Department of Labor reported that the number of individuals filing for initial jobless benefits last week rose by 38,000 to 368,000, compared to expectations for an increase of 20,000 to 350,000.

Personal incomes in the U.S., meanwhile, jumped 2.6% in December, the largest increase in eight years.

The news sparked a gold selloff as investors avoided the precious metal ahead of Friday's release of the January jobs report.

Gold prices gained earlier this week after the Commerce Department reported that the U.S. gross domestic product contracted for the first time since the second quarter of 2009 in the three months ending December, shrinking by 0.1%.

Economists were forecasting growth of 1.1% after a 3.1% expansion in the preceding quarter, and a Federal Reserve decision to make no changes to monetary stimulus policies and keep benchmark interest rates near zero gave the metal room to rise to levels ripe for profit taking on Thursday.

Meanwhile on the Comex, silver for March delivery was down 2.37% and trading at USD31.413 a troy ounce, while copper for March delivery was down 0.43% and trading at USD3.734 a pound.









Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.