Investing.com – Gold futures extended losses on Thursday, slumping to a six-day low as mounting concerns over the global growth outlook saw risk aversion sharpen, boosting the U.S. dollar and reducing the appeal of commodities.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,522.15 a troy ounce during U.S. morning trade, tumbling 1.88%.
It earlier fell by as much as 2.05% to hit USD1,519.35, the lowest price since June 15.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rallied 1.2% to trade at 76.20, after earlier rising to a one-week high of 76.24.
Gold prices often move inversely to the U.S. dollar, as gold becomes more expensive for buyers using other currencies.
The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending June 18 rose by 9K to a seasonally adjusted 429K, confounding expectations for a decline to 410K.
The downbeat data added to fears over U.S. growth prospects after the Federal Reserve downgraded its 2011 U.S. economic growth forecast to a range of 2.7% to 2.9%, down from a previous estimate of 3.1% to 3.3% on Wednesday.
Fed Chairman Ben Bernanke confirmed that the bank was winding up its USD600 billion bond-buying program at the end of June and said further easing was unlikely.
Also Thursday, preliminary data showed that private sector activity in the euro zone grew at its slowest rate in more than a year-and-a-half in June, while a separate report showed that China’s purchasing managers’ index fell to an 11-month low of 50.1 in June.
Meanwhile, a sharp decline in crude oil prices reduced concerns over oil-led inflation, diminishing the appeal of the precious metal.
Crude oil for delivery in August plunged 4.4% on the New York Mercantile Exchange to trade at a four month low of USD90.33 a barrel.
Elsewhere, silver for July delivery plunged 3.18% to trade at USD35.28 a troy ounce during U.S. morning trade, while copper for July delivery slumped 0.78% to trade at USD4.029 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,522.15 a troy ounce during U.S. morning trade, tumbling 1.88%.
It earlier fell by as much as 2.05% to hit USD1,519.35, the lowest price since June 15.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rallied 1.2% to trade at 76.20, after earlier rising to a one-week high of 76.24.
Gold prices often move inversely to the U.S. dollar, as gold becomes more expensive for buyers using other currencies.
The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending June 18 rose by 9K to a seasonally adjusted 429K, confounding expectations for a decline to 410K.
The downbeat data added to fears over U.S. growth prospects after the Federal Reserve downgraded its 2011 U.S. economic growth forecast to a range of 2.7% to 2.9%, down from a previous estimate of 3.1% to 3.3% on Wednesday.
Fed Chairman Ben Bernanke confirmed that the bank was winding up its USD600 billion bond-buying program at the end of June and said further easing was unlikely.
Also Thursday, preliminary data showed that private sector activity in the euro zone grew at its slowest rate in more than a year-and-a-half in June, while a separate report showed that China’s purchasing managers’ index fell to an 11-month low of 50.1 in June.
Meanwhile, a sharp decline in crude oil prices reduced concerns over oil-led inflation, diminishing the appeal of the precious metal.
Crude oil for delivery in August plunged 4.4% on the New York Mercantile Exchange to trade at a four month low of USD90.33 a barrel.
Elsewhere, silver for July delivery plunged 3.18% to trade at USD35.28 a troy ounce during U.S. morning trade, while copper for July delivery slumped 0.78% to trade at USD4.029 a pound.