Investing.com - Gold prices took a dive on Thursday after advancing U.S. service-sector and labor-market reports sent investors snapping up greenback positions on expectations that the Federal Reserve remains on course to taper stimulus programs this month.
Gold and the dollar tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,371.40 during U.S. afternoon hours, down 1.34%.
Gold prices hit a session low of USD1,365.00 a troy ounce and high of USD1,399.40 a troy ounce.
Gold futures were likely to find support at USD1,351.90 a troy ounce, the low from Aug. 20, and resistance at USD1,416.30, Tuesday's high.
The December contract settled down 1.56% at USD1,390.00 a troy ounce on Wednesday.
The Institute of Supply Management reported earlier that its U.S. non-manufacturing purchasing managers' index hit a 29-month high of 58.6 in August from 56.0 in July.
Analysts were expecting the index to fall to 55.0 last month.
Better-than-expected economic indicators out of the manufacturing and labor markets bolstered demand for the dollar as well, which came at gold's expense.
Official data showed that U.S. factory orders fell 2.4% in July, less than an expected 3.3% decline following an upwardly revised 1.6% rise the previous month.
The Department of Labor, meanwhile, reported that the number of individuals filing for initial jobless benefits in the week ending Aug. 30 fell by 9,000 to 323,000, outpacing forecasts for a decline of 2,000.
Investors took in stride an ADP report showing that 176,000 jobs were created in the U.S. private sector in August, less than an expected 180,000 increase after a downwardly revised 198,000 rise the previous month.
The day's rosy data fueled sentiments that the Federal Reserve may announce at its Sept. 17-18 policy meeting a decision to begin winding down its USD85 billion in monthly bond purchases.
Monetary stimulus tools such as asset purchases weaken the greenback to spur recovery, which makes gold an attractive hedge, though talk of an end to such ultra-loose policies tends to send the dollar rising and gold falling.
Elsewhere on the Comex, silver for December delivery was down 0.54% at USD23.288 a troy ounce, while copper for December delivery was up 0.02% and trading at USD3.242 a pound.
Gold and the dollar tend to trade inversely with one another.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,371.40 during U.S. afternoon hours, down 1.34%.
Gold prices hit a session low of USD1,365.00 a troy ounce and high of USD1,399.40 a troy ounce.
Gold futures were likely to find support at USD1,351.90 a troy ounce, the low from Aug. 20, and resistance at USD1,416.30, Tuesday's high.
The December contract settled down 1.56% at USD1,390.00 a troy ounce on Wednesday.
The Institute of Supply Management reported earlier that its U.S. non-manufacturing purchasing managers' index hit a 29-month high of 58.6 in August from 56.0 in July.
Analysts were expecting the index to fall to 55.0 last month.
Better-than-expected economic indicators out of the manufacturing and labor markets bolstered demand for the dollar as well, which came at gold's expense.
Official data showed that U.S. factory orders fell 2.4% in July, less than an expected 3.3% decline following an upwardly revised 1.6% rise the previous month.
The Department of Labor, meanwhile, reported that the number of individuals filing for initial jobless benefits in the week ending Aug. 30 fell by 9,000 to 323,000, outpacing forecasts for a decline of 2,000.
Investors took in stride an ADP report showing that 176,000 jobs were created in the U.S. private sector in August, less than an expected 180,000 increase after a downwardly revised 198,000 rise the previous month.
The day's rosy data fueled sentiments that the Federal Reserve may announce at its Sept. 17-18 policy meeting a decision to begin winding down its USD85 billion in monthly bond purchases.
Monetary stimulus tools such as asset purchases weaken the greenback to spur recovery, which makes gold an attractive hedge, though talk of an end to such ultra-loose policies tends to send the dollar rising and gold falling.
Elsewhere on the Comex, silver for December delivery was down 0.54% at USD23.288 a troy ounce, while copper for December delivery was up 0.02% and trading at USD3.242 a pound.