Investing.com – Gold futures tumbled to a three-week low on Thursday, trading below the psychologically-important level of USD1,800-an-ounce after the European Central Bank announced measures to boost dollar liquidity.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,787.55 a troy ounce during U.S. morning trade, tumbling 2%.
It earlier fell as much as 2.5% to trade at USD1,779.75 a troy ounce, the lowest price since August 29.
Gold futures came under pressure after the ECB announced that it will introduce U.S. dollar liquidity-providing measures to European banks before the end of the year, in conjunction with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank.
Meanwhile, European Union economic and monetary affairs commissioner Olli Rehn said earlier that Greece looks likely to receive approval for the disbursement of its next tranche of aid at the end of the month.
The comments came after French and German leaders said Wednesday that they were determined to keep Greece in the euro zone.
A successful Spanish debt auction earlier in the day also weighed on the safe haven appeal of the precious metal.
Elsewhere, the U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits rose by 11,000 to a seasonally adjusted 428,000 last week, confounding expectations for a decline to 410,000.
A separate report from the Federal Reserve Bank of New York said that manufacturing conditions in the New York-region fell by 1.1 points to minus 8.8 in September from minus 7.7 in August. Analysts had expected the index to improve to minus 4.0 in September.
Also Thursday, official data showed that U.S. core consumer price inflation rose 0.2% in August, in line with market expectations, while consumer prices including food and energy costs rose 0.4% last month, above expectations for a 0.2% gain.
Despite the pullback, gold prices were expected to remain supported amid fears over an imminent Italian sovereign debt downgrade.
Elsewhere on the Comex, silver for December delivery fell 0.85% to trade at USD40.19 a troy ounce, while copper for December delivery jumped 1.25% to trade USD3.958 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,787.55 a troy ounce during U.S. morning trade, tumbling 2%.
It earlier fell as much as 2.5% to trade at USD1,779.75 a troy ounce, the lowest price since August 29.
Gold futures came under pressure after the ECB announced that it will introduce U.S. dollar liquidity-providing measures to European banks before the end of the year, in conjunction with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank.
Meanwhile, European Union economic and monetary affairs commissioner Olli Rehn said earlier that Greece looks likely to receive approval for the disbursement of its next tranche of aid at the end of the month.
The comments came after French and German leaders said Wednesday that they were determined to keep Greece in the euro zone.
A successful Spanish debt auction earlier in the day also weighed on the safe haven appeal of the precious metal.
Elsewhere, the U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits rose by 11,000 to a seasonally adjusted 428,000 last week, confounding expectations for a decline to 410,000.
A separate report from the Federal Reserve Bank of New York said that manufacturing conditions in the New York-region fell by 1.1 points to minus 8.8 in September from minus 7.7 in August. Analysts had expected the index to improve to minus 4.0 in September.
Also Thursday, official data showed that U.S. core consumer price inflation rose 0.2% in August, in line with market expectations, while consumer prices including food and energy costs rose 0.4% last month, above expectations for a 0.2% gain.
Despite the pullback, gold prices were expected to remain supported amid fears over an imminent Italian sovereign debt downgrade.
Elsewhere on the Comex, silver for December delivery fell 0.85% to trade at USD40.19 a troy ounce, while copper for December delivery jumped 1.25% to trade USD3.958 a pound.