WASHINGTON (dpa-AFX) - After posting gains in the previous two sessions, gold futures settled lower on Thursday, as the dollar climbed higher and bond yields rose as data from the Labor Department showed an unexpected drop in weekly jobless claims.
The dollar index advanced to 100.97 this afternoon, gaining about 0.7%. The Fed is expected to raise interest rate by 25 basis points next week. However, analysts are hopeful that the increase next week will be the last.
Gold futures for August ended lower by $9.90 or about 0.5% at $1,970.90 an ounce.
Silver futures for September ended down $0.425 at $24.962 an ounce, while Copper futures for September settled at $3.8345 per pound, gaining $0.0205.
Data from the Labor Department showed initial jobless claims slipped to 228,000 in the week ended July 15, a decrease of 9,000 from the previous week's unrevised level of 237,000. Economists had expected jobless claims to inch up to 242,000.
'Gold is weakening as Treasury yields surge after jobless claims reminded us how strong the labor market remains. Gold continues to come off a two-month high as Fed rate hike bets edge higher,' says Edward Moya, Senior Market Analyst at OANDA. 'Gold is looking a little heavy here as prices approach key support that has been in place for most of the month of July. A drop below the $1960 level could trigger some momentum selling towards $1940,' he adds.
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