Investing.com - Gold prices pared back gains on Thursday, coming off highs hit after the Federal Reserve said it would be “patient” in deciding when to raise U.S. interest rates.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were up 0.77% to $1,203.70 a troy ounce, off highs of $1,213.80.
Gold trimmed gains as the dollar strengthened after data showing the number of people who filed for unemployment assistance in the U.S. last week fell more-than-expected, pointing to an ongoing recovery in the labor market.
The Labor Department reported that number of individuals filing for initial jobless benefits fell by 6,000 to 289,000 from the previous week’s revised total of 295,000.
The US dollar index, which tracks the greenback against a basket of six major rivals, was close to five year highs at 89.57, up from 89.43 ahead of the report.
Gold had rallied earlier after the Fed said Wednesday it would be “patient” before raising rates, guidance which it said is consistent with earlier assurances that rates would stay low "for a considerable time."
At the bank’s post policy meeting press conference Fed Chair Janet Yellen said the Fed was unlikely to raise rates for the “next couple of meetings” indicating that a move in April at the earliest is possible.
Commodity markets have benefited from the Fed’s monetary easing program in recent years and could come under pressure if it tightens monetary policy.
Elsewhere in metals trading, silver for March delivery was up 0.81% at $16.06 a troy ounce, while copper futures for March delivery slid 0.13% to $2.86 a pound.