Investing.com -- Gold futures retreated on Thursday extending a three-day losing streak following a significant rally earlier this week, amid the continual appreciation of the dollar.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery fell 8.70 or 0.72% to 1,194.40, as metal traders continued to react to the relatively hawkish tone of the minutes from the Federal Open Market Committee's March which were released on Wednesday. Gold reached a daily-high of $1,203.30 in U.S. morning trading, before falling steadily less than an hour into the session.
Gold futures likely received support at $1,178.20, the low from March 31, and resistance at $1,236.70, the high from February 16.
Gold surged more than $20 an ounce on Monday to $1,235.50 after the release of a disappointing U.S. jobs report for the month of March, but has quickly recoiled from its seven-week high.
The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six major currencies, rose 0.98 or nearly 1% to 99.23 on Thursday following the release of strong economic data. The index is up more than 20% on a year-over-year basis.
Dollar-denominated commodities such as gold are more expensive for foreign purchasers when the dollar becomes stronger.
On Thursday, U.S. Department of Labor said initial claims for state unemployment benefits increased by 14,000 last week to a seasonally-adjusted amount of 281,000 for the week ending April 4. The four-week moving average, which is viewed as a more accurate approximation of labor market trends, dropped 3,000 to 282,250 last week, the lowest level since June, 2000.
Also on Thursday, the Bloomberg Consumer Comfort Index rose from 46.2 to 47.9 last week, the highest level since May, 2007.
The optimistic findings raise the possibility that the slowdown in job growth for March may have been an anomaly. The U.S. Bureau of Labor Statistics said on Friday that the U.S. economy added only 126,000 new jobs in March, the smallest increase since December 2013 and dramatically lower than forecasts for a gain of 245,000.
In New Delhi, gold futures for June delivery on the Multi Commodity Exchange dipped 0.78% to Rs 26,562 per 10 grams. India is the largest purchaser of the precious metal in the world.
Elsewhere, Silver for May delivery fell 0.26 or 1.59% to 16.193 a troy ounce. Copper for May delivery dropped 0.006 or 0.21% to 2.726 a pound.