Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Gold gains as U.S. jobless claims rise, dampens talk of Fed policy move

Published 02/21/2013, 01:21 PM
TTEF
-
GC
-
HG
-
SI
-
Investing.com - Gold prices rose in U.S. trading on Thursday after weekly jobless claims came in higher in the U.S. than expected, quashing talk that the Federal Reserve may closer to winding down monetary stimulus measures.

Higher-than-expected core inflation rates in the U.S. capped gold's gains.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were up 0.08% at USD1,579.20 a troy ounce in U.S. trading on Wednesday, up from a session low of USD1,554.80 and down from a high of USD1,584.40 a troy ounce.

Gold futures were likely to test support USD1,546.35 a troy ounce, the low from June 1, 2012, and resistance at USD1,618.70, Monday's high.

Talk that the Federal Reserve may be closer to winding down stimulus programs, including a USD85 billion monthly bond-buying program, pushed gold prices down in recent sessions, though data released on Thursday sent prices gaining.

The U.S. Department of Labor reported earlier that the number of individuals filing for initial jobless claims in the week ending Feb. 16 rose by 20,000 to 362,000, surpassing market calls for an increase of 13,000 to 355,000.

Also in the U.S., the Federal Reserve Bank of Philadelphia said that its manufacturing index fell to -12.5 in February from January’s reading of -5.8, the sharpest contraction since July.

Analysts were hoping for a gain into positive territory at 1.0.
Commodities investors shrugged off improving data out of the U.S. housing sector.

The National Association of Realtors reported earlier that existing home sales jumped up 0.4% to a seasonally adjusted 4.92 million units in January, up from December’s revised total of 4.90 million units.

Analysts had expected U.S. existing home sales to hold steady at 4.90 million units in January.

U.S. inflation data capped gold's gains.

The country's monthly consumer price index remained unchanged in January, though the core inflation rate, stripped of volatile food and energy prices, rose 0.3%, outpacing market expectations for a 0.2% reading and above December's 0.1% reading.

The numbers kept market talk alive that the Federal Reserve may be closer to winding down monetary stimulus tools that weaken the dollar and boost the prices of gold and other commodities as side effects.

Meanwhile on the Comex, silver for March delivery was up 0.39% and trading at USD28.735 a troy ounce, while copper for March delivery was down 1.50% and trading at USD3.554 a pound.








Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.