WASHINGTON (dpa-AFX) - Gold prices fell on Thursday, extending losses to a third straight session, as the dollar surged higher amid optimism over progress in the debt ceiling talks, and on data showing a drop in U.S. jobless claims last week.
Following a meeting earlier in the week, President Joe Biden and House Speaker Kevin McCarthy, R-Calif., both expressed optimism a deal will be reached.
The dollar index climbed to 103.62, gaining nearly 0.75%.
Gold futures for June ended lower by $25.10 or about 1.3% at $1,959.80 an ounce, the lowest close in about eight weeks.
Silver futures for July ended down $0.264 at $23.633 an ounce, while Copper futures for July settled at $3.6895 per pound, losing $0.0650.
Data from the Labor Department showed that first-time claims for U.S. unemployment benefits fell more than expected in the week ended May 13.
The report said initial jobless claims slid to 242,000, a decrease of 22,000 from the previous week's unrevised level of 264,000. Economists had expected jobless claims to dip to 254,000.
A separate report released by the Federal Reserve Bank of Philadelphia showed a continued contraction in regional manufacturing in the month of May, although the pace of contraction slowed by more than expected.
The Philly Fed said its diffusion index for current activity surged to a negative 10.4 in May from a negative 31.3 in April.
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