Investing.com - Gold futures traded lower during U.S. afternoon hours Thursday, as a strong greenback depressed demand for dollar denominated commodities.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,744.45 a troy ounce during U.S. afternoon trade, giving back 0.49%.
Prices fell by as much as 0.75% earlier in the session to hit a daily low of USD1,739.45 a troy ounce, the weakest level since October 16.
Gold futures were likely to find near-term support at USD1,730.15 a troy ounce, the low from October 15 and resistance at USD1,774.95, the high from October 12.
Investors remained cautious as European Union leaders gathered for a two-day summit in Brussels, although no major announcements on Spain or Greece were expected.
Spain saw the yield on 10-year government bonds fall to the lowest level since April at an auction of government debt earlier in the session, as investors bought the country’s debt in the expectations that Madrid is moving closer to a bailout.
Traders have been anticipating for the past month that the Spanish government would ask for a full-scale sovereign bailout.
A bailout would allow the ECB to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation. But Spain has been reluctant to do so because it may come with conditions on its budget.
Elsewhere, in the U.S., the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week rose by 46,000 to a seasonally adjusted 388,000, compared to expectations for an increase to 365,000.
The previous week’s figure was revised up to 342,000 from a previously reported 339,000, which was the lowest reading since February 2008.
A separate report showed that manufacturing activity in Philadelphia expanded for the first time in six months in October.
The Federal Reserve Bank of Philadelphia said its manufacturing index improved to 5.7 from minus 1.9 in September and better than expectations for a reading of 1.0.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, advanced 0.2% to trade at 79.24.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Elsewhere on the Comex, silver for December delivery fell 1.03% to trade at USD32.89 a troy ounce, while copper for December delivery dipped 0.23% to trade at USD3.739 a pound.
Copper futures were mildly lower, as investors digested data showing China’s economy grew at the weakest rate since the first quarter of 2009 in the third quarter.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,744.45 a troy ounce during U.S. afternoon trade, giving back 0.49%.
Prices fell by as much as 0.75% earlier in the session to hit a daily low of USD1,739.45 a troy ounce, the weakest level since October 16.
Gold futures were likely to find near-term support at USD1,730.15 a troy ounce, the low from October 15 and resistance at USD1,774.95, the high from October 12.
Investors remained cautious as European Union leaders gathered for a two-day summit in Brussels, although no major announcements on Spain or Greece were expected.
Spain saw the yield on 10-year government bonds fall to the lowest level since April at an auction of government debt earlier in the session, as investors bought the country’s debt in the expectations that Madrid is moving closer to a bailout.
Traders have been anticipating for the past month that the Spanish government would ask for a full-scale sovereign bailout.
A bailout would allow the ECB to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation. But Spain has been reluctant to do so because it may come with conditions on its budget.
Elsewhere, in the U.S., the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week rose by 46,000 to a seasonally adjusted 388,000, compared to expectations for an increase to 365,000.
The previous week’s figure was revised up to 342,000 from a previously reported 339,000, which was the lowest reading since February 2008.
A separate report showed that manufacturing activity in Philadelphia expanded for the first time in six months in October.
The Federal Reserve Bank of Philadelphia said its manufacturing index improved to 5.7 from minus 1.9 in September and better than expectations for a reading of 1.0.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, advanced 0.2% to trade at 79.24.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Elsewhere on the Comex, silver for December delivery fell 1.03% to trade at USD32.89 a troy ounce, while copper for December delivery dipped 0.23% to trade at USD3.739 a pound.
Copper futures were mildly lower, as investors digested data showing China’s economy grew at the weakest rate since the first quarter of 2009 in the third quarter.