FU: Gold futures tumble to 4-day low after flurry of U.S. economic data
Futures Pros – Gold futures erased early gains on Thursday, tumbling to a 4-day low, following the release of a flurry of U.S. economic data on initial jobless claims, durable goods orders and personal spending.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD 1,377.45 a troy ounce during European afternoon trade, sliding 0.61%.
It earlier fell to USD 1,375.55 a troy ounce, the lowest price since December 17.
Earlier in the day, a report from the U.S. Department of Labor showed that the number of individuals filing for initial jobless benefits in the week ended December 18 fell unexpectedly to a seasonally adjusted 420K. Analysts had expected initial jobless claims to rise to 424K.
Also Thursday, official data showed that U.S. core durable goods orders rose more-than-expected in November, rising by 2.4%, after falling by a revised 1.9% in October. Analysts had expected U.S. core durable goods orders to rise by 1.0% in November.
The report also showed that durable goods orders, which include transportation items, declined for the second consecutive month in November, falling by 1.3%, after falling by a revised 3.1% in October. Analysts had expected durable goods orders to fall by 1.0% in November.
In addition, a separate report showed that U.S. personal income rose more-than-expected, personal spending rose less-than-expected, while the core PCE price index rose in line with expectations in November.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.15% during European afternoon trade.
Gold prices often move inversely to the U.S. dollar, as gold becomes more expensive for buyers using other currencies.
Meanwhile, global financial service provider Barclays said in a report late Wednesday that it expected gold prices to peak at USD 1,490 an ounce in the third quarter of 2011.
Elsewhere, silver for March delivery dipped 0.44% to trade at a 3-day low of USD 29.16 a troy ounce, while copper for March delivery plunged 1.31% to trade at a 3-day low of USD 4.233 a troy ounce during European afternoon trade.
