Futures Pros – Gold futures erased gains on Thursday, tumbling to a 2-week low, following the release of upbeat data on U.S. initial jobless claims, housing starts and manufacturing activity. On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD 1,366.05 a troy ounce during European afternoon trade, tumbling 1.05%. It earlier fell to USD 1,361.95 a troy ounce, the lowest price since November 29. Gold prices turned lower after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending December 11 fell unexpectedly to a seasonally adjusted 420K. Analysts had expected initial jobless claims to rise to 425K in the week ending December 11. Meanwhile, a separate report showed that U.S. housing starts rose more-than-expected in November, rising for the first time in three months. Also Thursday, the Federal Reserve Bank of Philadelphia said that manufacturing activity in the Philadelphia-region increased unexpectedly in December, rising for the third consecutive month. In addition, the survey’s broad indicators of future activity suggest that optimism among the region’s manufacturing executives also continues to improve. Meanwhile, the dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.13% during European afternoon trade. A stronger dollar makes U.S. commodities more expensive for buyers holding other currencies and reduces the appeal of the precious metal as an alternative asset. Investors also focused on a 2-day summit of EU Leaders in Brussels, gathering to discuss the next step in dealing with the euro zone’s debt crisis and how to stop it from spreading. Elsewhere, silver for March delivery fell 0.99% to trade at a 4-day low of USD 28.52 a troy ounce, while copper for March delivery slumped 0.17% to trade at USD 4.095 a troy ounce during European afternoon trade.

Source