Investing.com - Gold prices rose on Thursday after higher-than-expected jobless claims data out of the U.S. prompted investors to snap up positions in the yellow metal on sentiments the Federal Reserve will keep monetary policy loose for months to come.
Loose monetary policies and low interest rates tend to weaken the dollar, which normally trades inversely with gold.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 0.14% at USD1,555.65 a troy ounce in U.S. trading on Thursday, up from a session low of USD1,539.85 and down from a high of USD1,559.35 a troy ounce.
Gold futures were likely to test support USD1,532.55 a troy ounce, the low from May 30, 2012, and resistance at USD1,604.25, Tuesday's high.
In the U.S., the Department of Labor reported earlier that the number of people filing for initial jobless benefits last week rose by 28,000 to 385,000, defying expectations for a decrease of 7,000 to 350,000.
The numbers weakened the dollar amid talk the Federal Reserve won't rush to dismantle its stimulus tools, including its monthly USD85 billion bond-buying program that weakens the greenback as a side effect, especially if the official March jobs report due for release on Friday disappoints, which some market participants view as a real possibility.
Gold also tracked the euro on Thursday, which saw hefty swings earlier after ECB President Mario Draghi said monetary authorities were "ready to act" and trim benchmark interest rates if needed, adding that monetary policy will remain accommodative for as long as is needed.
Both gold and the single currency, however, snapped back up after Draghi said markets have underestimated the bank’s commitment to the euro.
Elsewhere on the Comex, silver for May delivery was up 0.28% at USD26.873 a troy ounce, while copper for May delivery was up 0.87% and trading at USD3.362 a pound.
Loose monetary policies and low interest rates tend to weaken the dollar, which normally trades inversely with gold.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were up 0.14% at USD1,555.65 a troy ounce in U.S. trading on Thursday, up from a session low of USD1,539.85 and down from a high of USD1,559.35 a troy ounce.
Gold futures were likely to test support USD1,532.55 a troy ounce, the low from May 30, 2012, and resistance at USD1,604.25, Tuesday's high.
In the U.S., the Department of Labor reported earlier that the number of people filing for initial jobless benefits last week rose by 28,000 to 385,000, defying expectations for a decrease of 7,000 to 350,000.
The numbers weakened the dollar amid talk the Federal Reserve won't rush to dismantle its stimulus tools, including its monthly USD85 billion bond-buying program that weakens the greenback as a side effect, especially if the official March jobs report due for release on Friday disappoints, which some market participants view as a real possibility.
Gold also tracked the euro on Thursday, which saw hefty swings earlier after ECB President Mario Draghi said monetary authorities were "ready to act" and trim benchmark interest rates if needed, adding that monetary policy will remain accommodative for as long as is needed.
Both gold and the single currency, however, snapped back up after Draghi said markets have underestimated the bank’s commitment to the euro.
Elsewhere on the Comex, silver for May delivery was up 0.28% at USD26.873 a troy ounce, while copper for May delivery was up 0.87% and trading at USD3.362 a pound.