Investing.com - Gold futures trimmed losses during U.S. morning hours on Thursday, bouncing off the lowest level of the session after a report showed that the number of people filing for initial jobless claims rose-more-than-expected last week.
Prices fell to the lowest level since July earlier in the session as speculation the Federal Reserve might end its bond-buying program sooner-than-expected dampened the appeal of the precious metal.
Prices came under additional pressure from a weak technical outlook and market talk that a large hedge fund was liquidating positions.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,573.00 a troy ounce during U.S. morning trade, down 0.3% on the day.
Prices fell by as much as 1% earlier in the session to hit a daily low of USD1,554.80, the weakest level since July 12.
Gold prices were likely to find near-term support at USD1,548.45 a troy ounce, the low from June 28 and resistance at USD1,609.00, Wednesday’s high.
Gold prices recouped some losses after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending February 16 rose by 20,000 to a seasonally adjusted 362,000, compared to expectations for an increase of 13,000 to 355,000.
A separate report showed that consumer prices were flat for a second consecutive month in January, while core prices, excluding food and energy costs, rose 0.3% in January, compared to expectations for a 0.2% increase.
Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories.
Gold traders now looked ahead to data on U.S. existing home sales and a report on manufacturing activity in Philadelphia later in the session as investors seek more cues on the country's economic health.
Gold futures came under heavy selling pressure earlier after the minutes of the Fed’s January meeting showed that policymakers discussed the slowing or stopping of USD85 billion in monthly bond purchases even before the job market improves, amid concerns that the policy could cause instability in financial markets.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system.
Meanwhile, a weak technical picture continued to weigh on the precious metal as investors remained hesitant to enter the market and open fresh long positions amid bearish chart signals.
Gold prices went into a “death cross” on Wednesday, triggering a flurry of sell orders. A “death cross” occurs when the 50-day moving average price falls below the 200-day moving average.
From a technical standpoint, gold could see further losses, with market analysts warning of a possible move towards the USD1,550-level.
Elsewhere on the Comex, silver for March delivery eased up 0.1% to trade at USD28.64 a troy ounce, while copper for March delivery dropped 1.7% to trade at USD3.547 a pound.
Prices fell to the lowest level since July earlier in the session as speculation the Federal Reserve might end its bond-buying program sooner-than-expected dampened the appeal of the precious metal.
Prices came under additional pressure from a weak technical outlook and market talk that a large hedge fund was liquidating positions.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,573.00 a troy ounce during U.S. morning trade, down 0.3% on the day.
Prices fell by as much as 1% earlier in the session to hit a daily low of USD1,554.80, the weakest level since July 12.
Gold prices were likely to find near-term support at USD1,548.45 a troy ounce, the low from June 28 and resistance at USD1,609.00, Wednesday’s high.
Gold prices recouped some losses after the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending February 16 rose by 20,000 to a seasonally adjusted 362,000, compared to expectations for an increase of 13,000 to 355,000.
A separate report showed that consumer prices were flat for a second consecutive month in January, while core prices, excluding food and energy costs, rose 0.3% in January, compared to expectations for a 0.2% increase.
Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories.
Gold traders now looked ahead to data on U.S. existing home sales and a report on manufacturing activity in Philadelphia later in the session as investors seek more cues on the country's economic health.
Gold futures came under heavy selling pressure earlier after the minutes of the Fed’s January meeting showed that policymakers discussed the slowing or stopping of USD85 billion in monthly bond purchases even before the job market improves, amid concerns that the policy could cause instability in financial markets.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system.
Meanwhile, a weak technical picture continued to weigh on the precious metal as investors remained hesitant to enter the market and open fresh long positions amid bearish chart signals.
Gold prices went into a “death cross” on Wednesday, triggering a flurry of sell orders. A “death cross” occurs when the 50-day moving average price falls below the 200-day moving average.
From a technical standpoint, gold could see further losses, with market analysts warning of a possible move towards the USD1,550-level.
Elsewhere on the Comex, silver for March delivery eased up 0.1% to trade at USD28.64 a troy ounce, while copper for March delivery dropped 1.7% to trade at USD3.547 a pound.