Investing.com - Gold prices bounced off a one-month low on Thursday, as the U.S. dollar retreated despite the release of upbeat jobless claims data and news the U.S. government averted a shutdown.
Comex gold futures were up 0.17% at $1,316.70 a troy ounce by 08:55 a.m. ET (12:55 GMT), off a one-month trough of $1,309.20 hit earlier in the day.
The U.S. Department of Labor reported on Thursday that the number of Americans filing for unemployment benefits unexpectedly fell last week, dropping to its lowest level in nearly 45 years.
The greenback initially strengthened after U.S. congressional leaders on Wednesday reached a two-year budget deal to raise government spending by almost $300 billion. The budget agreement averted the risk of a government shutdown or a debt default.
The dollar was also underpinned by higher U.S. bond yields, with the yield on benchmark 10-year Treasury notes hovering close to recent four-year highs on Thursday.
But the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.13% at 90.04.
Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency.
Concerns over recent volatility on global stock markets persisted. Equities wordlwide plummeted on Friday after a strong U.S. jobs report sparked concerns over rising inflation.
Markets began to stabilize on Wednesday but traders were still cautious as high bond yields could cause them to plunge again.
Elsewhere on the Comex, silver futures gained 0.84% to $16.38 a troy ounce.