NEW YORK (Dow Jones)--Gold futures rose slightly Thursday as weaker-than-forecast U.S. durable goods orders and jobless claims boosted expectations monetary policy will remain easy for longer.
The most actively traded gold contract, for February delivery, was recently up $2.30, or 0.2%, at $1,335.30 a troy ounce on the Comex division of the New York Mercantile Exchange.
"The prospect of low rates being continued here is why (gold) rebounded," said MF Global analyst Tom Pawlicki.
Gold jumped after data showed U.S. demand for long-lasting goods unexpected fell last month, as manufacturers' orders for durable goods decreased 2.5% when economists had predicted a 1.4% gain.
Separate figures showed the number of U.S. workers filing new claims for unemployment benefits unexpectedly surged last week. Initial jobless claims rose 51,000 to 454,000 in the week ended Jan. 22. Economists had expected claims would rise by just 1,000.
The disappointing data reinforced the notion the Federal Reserve will stick to its easy-money policy of ultralow interest rates and Treasury purchases that has helped send gold to record highs in recent weeks.
Federal Reserve officials this week, at their first policy-setting meeting of 2011, voted unanimously to keep interest rates at ultralow levels and push ahead with a controversial $600 billion Treasury purchase plan.
Low interest rates have been a boon for noninterest-bearing gold by reducing the opportunity costs of holding the metal.
Another cornerstone of gold's historic rise has been inflation expectations. As a hedge against rising prices, gold has benefited because some don't believe the Fed will be able to sponge up extra liquidity from the low rates and Treasury purchases in time to avoid problematic consumer and producer price increases.
So far, inflation in the U.S. has been tame, but some see it picking up over the longer term.
-By Matt Whittaker, Dow Jones Newswires; 212-416-2139; matt.whittaker@dowjones.com
