Gold rose as much as 1% on Thursday
Investing.com - traded higher on Thursday, despite increased expectations of a June rate hike, after the release of a better than expected initial jobless claims report.
Gold for April delivery on the Comex division of the New York Mercantile Exchange added $4.55, or 0.36%, to $1,253.15 a troy ounce by 13:35 EDT.
Gold futures eased from a session high $1,260.65, after the U.S. Department of Labor reported that decreased by 25,000 to 234,000 in the week ending April 1 from the previous week’s revised total of 259,000.
Analysts had expected jobless claims to drop by 8,000 to 250,000 last week.
Meanwhile, expectations of June rate hike grew, after the Federal Reserve from its March meeting on Wednesday.
The Federal Reserve said that it would start to unwind its $4.5 trillion balance sheet “later this year” and maintained its view, rate hikes would be gradual.
Some analysts supported the idea that the Federal Reserve is poised to increase interest rates in June.
“We have expressed a strong conviction that, unless the data deteriorate or financial conditions ratchet tighter, the Fed will next hike rates at its June meeting.” Morgan Stanley noted in a research report to clients.
According to investing.com’s , 58% of traders expect a rate hike in June compared to 50% of traders prior to the release of the Fed minutes.
Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
Meanwhile, a two-day summit between later today, is expected to be closely watched by investors, as a negative outcome could weigh on China-U.S. trade relations.
, tacked on 0.39% to $18.258, a troy ounce while lost 0.71% to trade at $2.661.
lost 0.14% to $958.15 while added 1.41% to $3.312.
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