WASHINGTON (dpa-AFX) - Gold prices fell sharply on Thursday despite a somewhat sluggish dollar and rising geopolitical tensions, as investors largely stayed cautious, looking ahead to crucial U.S. non-farm payroll data and next week's presidential election.
The dollar index, which dropped to 103.82 around mid morning, recovered to 104.20 subsequently, and was at 104.08 a little while ago, recording a small gain.
Gold futures for November ended down $50.20 or about 1.8% at $2,738.30 an ounce. Gold futures gained nearly 4% in the month.
Silver futures for November dropped to $32.653 an ounce today, losing $1.261 or about 3.7%, while Copper futures for November slid to $4.3165 per pound, down $0.0110 or 0.25% from the previous close.
Geopolitical tensions simmered after North Korea fired an intercontinental ballistic missile, which flew for 86 minutes - the longest flight recorded yet - before falling into waters off its eastern coast.
The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.2% in September and the annual rate of growth slowed to 2.1%, which both matched expectations.
However, the annual rate of growth by the core PCE price index, which excludes food and energy prices, was unchanged from the previous month at 2.7%. Economists had expected the pace of growth to slow to 2.6%.
The slightly faster than expected core price growth may have added to recent concerns the Federal Reserve will lower interest rates more slowly than hoped.
A report from the Labor Department showed initial jobless claims unexpectedly fell to a five-month low last week.
MNI Indicators released a report on Thursday showing its reading on Chicago-area business activity unexpectedly tumbled to a five-month low in October. The report said MNI Indicators' Chicago business barometer slumped to 41.6 in October from 46.6 in September, with a reading below 50 indicating contraction. Economists had expected the business barometer to inch up to 47.0.
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