Gold pares gains as U.S. dollar strengthens
Investing.com - Gold prices pared gains on Thursday, as demand for the greenback grew stronger after the release of upbeat U.S. jobless claims and manufacturing activity data.
Comex gold futures were still up around $6.84, or about 0.54%, to $1,289.94 a troy ounce by 8:50AM ET (1250GMT), pulling away from a two-month high of $1,298.10 touched late last week.
Gold prices weakened after data showed that the number of people who filed for unemployment assistance in the U.S. last week fell more than expected.
A separate report showed that manufacturing activity in the Philadelphia region declined less than expected this month.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.50% at 93.87, close to the previous session’s nearly three-week high of 94.06.
Gold prices finished higher on Wednesday as news that two White House business advisory groups have disbanded prompted a late-session turn higher for the yellow metal.
Gold gained further after the minutes from the Federal Reserve’s last policy meeting showed policymakers were increasingly wary of recent softness in inflation and could delay a rate hike.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
Elsewhere on the Comex, silver futures climbed 10.1 cents, or around 0.60%, to $17.05 a troy ounce.
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