Investing.com - Gold futures fell to the lowest levels of the session on Thursday, after a series of upbeat U.S. economic data fuelled speculation the Federal Reserve will begin to taper its bond-buying program as early as September.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,324.60 a troy ounce during U.S. morning hours, down 0.65%. The December contract settled up 1% at USD1,333.40 a troy ounce on Wednesday.
Gold prices traded in a range between USD1,318.10 a troy ounce, the daily low and a session high of USD1,345.80 a troy ounce.
Gold futures were likely to find support at USD1,282.80 a troy ounce, the low from August 8 short-term resistance at USD1,347.85, the high from July 23.
Gold prices came under pressure after official data showed that the number of people who filed for unemployment assistance in the U.S. fell more-than-expected last week to hit the lowest level since October 2007.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending August 9 fell by 15,000 to a seasonally adjusted 320,000.
Jobless claims for the preceding week were revised up to a gain of 335,000, from a previously reported 333,000.
Analysts had expected U.S. jobless claims to hold steady at 335,000 last week.
A separate report showed that consumer price inflation in the U.S. rose in line with expectations in July, while prices excluding food and energy costs inched up modestly.
The Bureau of Labor Statistics said that consumer prices rose by a seasonally adjusted 0.2% in July, in line with forecasts, after rising by 0.5% in June.
Year-over-year, consumer prices rose at an annualized rate of 2% last month, matching expectations and up from 1.8% in June.
Consumer prices, excluding food and energy costs, rose 0.2% in July, meeting forecasts. Core consumer prices inched up 0.2% in June.
Core CPI increased at annualized rate of 1.7% last month, in line with estimates and up from 1.6% in June.
Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories.
The central bank usually tries to aim for 2% core inflation or less.
The strong data reinforced expectations that the economic recovery is strong enough for the Fed to begin tapering its USD85 billion-a-month asset purchase program later this year.
The central bank is scheduled to meet September 17-18 to review the economy and assess policy.
Gold traders have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
Any improvement in the U.S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months.
The precious metal is on track to post a loss of approximately 20% on the year amid concerns the Fed will start to unwind its stimulus program by the year's end.
An exit from the stimulus would deal a heavy blow to gold, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies.
Elsewhere on the Comex, silver for September delivery was up 0.55% to trade at USD21.91 a troy ounce, the highest level since June 14.
Meanwhile, copper for September delivery dipped 0.9% to trade at USD3.310 a pound. The industrial metal rose to a ten-week high of USD3.348 a pound on Wednesday.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,324.60 a troy ounce during U.S. morning hours, down 0.65%. The December contract settled up 1% at USD1,333.40 a troy ounce on Wednesday.
Gold prices traded in a range between USD1,318.10 a troy ounce, the daily low and a session high of USD1,345.80 a troy ounce.
Gold futures were likely to find support at USD1,282.80 a troy ounce, the low from August 8 short-term resistance at USD1,347.85, the high from July 23.
Gold prices came under pressure after official data showed that the number of people who filed for unemployment assistance in the U.S. fell more-than-expected last week to hit the lowest level since October 2007.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending August 9 fell by 15,000 to a seasonally adjusted 320,000.
Jobless claims for the preceding week were revised up to a gain of 335,000, from a previously reported 333,000.
Analysts had expected U.S. jobless claims to hold steady at 335,000 last week.
A separate report showed that consumer price inflation in the U.S. rose in line with expectations in July, while prices excluding food and energy costs inched up modestly.
The Bureau of Labor Statistics said that consumer prices rose by a seasonally adjusted 0.2% in July, in line with forecasts, after rising by 0.5% in June.
Year-over-year, consumer prices rose at an annualized rate of 2% last month, matching expectations and up from 1.8% in June.
Consumer prices, excluding food and energy costs, rose 0.2% in July, meeting forecasts. Core consumer prices inched up 0.2% in June.
Core CPI increased at annualized rate of 1.7% last month, in line with estimates and up from 1.6% in June.
Core prices are viewed by the Federal Reserve as a better gauge of longer-term inflationary pressure because they exclude the volatile food and energy categories.
The central bank usually tries to aim for 2% core inflation or less.
The strong data reinforced expectations that the economic recovery is strong enough for the Fed to begin tapering its USD85 billion-a-month asset purchase program later this year.
The central bank is scheduled to meet September 17-18 to review the economy and assess policy.
Gold traders have closely been looking out for U.S. data reports recently to gauge if they will strengthen or weaken the case for the Fed to reduce its bond purchases.
Any improvement in the U.S. economy was likely to reinforce the view that the central bank will begin to taper its bond purchase program in the coming months.
The precious metal is on track to post a loss of approximately 20% on the year amid concerns the Fed will start to unwind its stimulus program by the year's end.
An exit from the stimulus would deal a heavy blow to gold, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies.
Elsewhere on the Comex, silver for September delivery was up 0.55% to trade at USD21.91 a troy ounce, the highest level since June 14.
Meanwhile, copper for September delivery dipped 0.9% to trade at USD3.310 a pound. The industrial metal rose to a ten-week high of USD3.348 a pound on Wednesday.