Investing.com - Gold futures moved lower in rangebound trade during U.S. morning hours on Thursday, following the release of better-than-expected data on U.S. jobless claims.
Investors also digested news that that the recession in the euro zone deepened in the fourth quarter, with economic growth contracting more-than-expected.
A weak technical picture also continued to weigh on the precious metal after prices broke below a key support level earlier in the week.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,642.15 a troy ounce during U.S. morning trade, down 0.15% on the day.
Prices held in between a tight range of USD1,638.85 a troy ounce, the daily low and the weakest level since January 4, and a session high of USD1,649.85 a troy ounce.
Gold prices were likely to find support at USD1,626.05 a troy ounce, the low from January 4 and resistance at USD1,670.25, the high from February 11.
The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending February 10 fell by 27,000 to a seasonally adjusted 341,000, compared to expectations for a decline of 8,000 to 360,000.
Continuing jobless claims in the week ended February 3 fell to a five-year low of 3.114 million. Analysts had expected continuing claims to fall to 3.200 million from last week’s revised figure of 3.244 million.
Meanwhile, the euro came under broad selling pressure after official data showed that euro zone gross domestic product contracted by 0.6% in the three months to December, compared to expectations for a 0.4% decline, after a 0.1% contraction in the third quarter.
It was the fastest rate of decline since 2009 and marked a third consecutive quarter of contraction.
Germany’s economy, the euro zone’s largest, contracted by 0.6% in the in the fourth quarter, more than expectations for a 0.5% drop on declining exports and investment.
France’s economy also contracted more than forecast, with gross domestic product falling by 0.3%, from 0.1% growth in the third quarter. Economists had forecast a contraction of 0.2% in the fourth quarter.
The downbeat global growth outlook prompted investors to shun riskier assets and move in to the relative safety of the U.S. dollar.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.55% to trade at 80.61, the strongest level since January 10.
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.
Market players now looked ahead to a meeting of Group-of-20 finance ministers in Moscow later in the week, which was likely to feature discussions on competitive currency devaluation.
Elsewhere on the Comex, silver for March delivery eased up 0.25% to trade at USD30.94 a troy ounce, while copper for March delivery added 0.2% to trade at USD3.750 a pound.
Investors also digested news that that the recession in the euro zone deepened in the fourth quarter, with economic growth contracting more-than-expected.
A weak technical picture also continued to weigh on the precious metal after prices broke below a key support level earlier in the week.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery traded at USD1,642.15 a troy ounce during U.S. morning trade, down 0.15% on the day.
Prices held in between a tight range of USD1,638.85 a troy ounce, the daily low and the weakest level since January 4, and a session high of USD1,649.85 a troy ounce.
Gold prices were likely to find support at USD1,626.05 a troy ounce, the low from January 4 and resistance at USD1,670.25, the high from February 11.
The U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending February 10 fell by 27,000 to a seasonally adjusted 341,000, compared to expectations for a decline of 8,000 to 360,000.
Continuing jobless claims in the week ended February 3 fell to a five-year low of 3.114 million. Analysts had expected continuing claims to fall to 3.200 million from last week’s revised figure of 3.244 million.
Meanwhile, the euro came under broad selling pressure after official data showed that euro zone gross domestic product contracted by 0.6% in the three months to December, compared to expectations for a 0.4% decline, after a 0.1% contraction in the third quarter.
It was the fastest rate of decline since 2009 and marked a third consecutive quarter of contraction.
Germany’s economy, the euro zone’s largest, contracted by 0.6% in the in the fourth quarter, more than expectations for a 0.5% drop on declining exports and investment.
France’s economy also contracted more than forecast, with gross domestic product falling by 0.3%, from 0.1% growth in the third quarter. Economists had forecast a contraction of 0.2% in the fourth quarter.
The downbeat global growth outlook prompted investors to shun riskier assets and move in to the relative safety of the U.S. dollar.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.55% to trade at 80.61, the strongest level since January 10.
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.
Market players now looked ahead to a meeting of Group-of-20 finance ministers in Moscow later in the week, which was likely to feature discussions on competitive currency devaluation.
Elsewhere on the Comex, silver for March delivery eased up 0.25% to trade at USD30.94 a troy ounce, while copper for March delivery added 0.2% to trade at USD3.750 a pound.