Investing.com - Gold prices extended Wednesday's gains into Thursday, soaring as U.S. jobless data pointed to an increasing likelihood the Federal Reserve will announce plans to stimulate the economy in the near future.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery were up 1.89% and trading at USD1,669.25 a troy ounce, up from a session low of USD1,653.75 and down from a high of USD1,675.15 a troy ounce early during the session.
Gold futures were likely to test support at USD1,653.75 a troy ounce, the earlier low, and resistance at USD1,675.15, the earlier high.
U.S. weekly jobless claims disappointed on Thursday.
The U.S. Department of Labor reported earlier that the number of people filing for initial jobless benefits rose by 4,000 to a seasonally adjusted 372,000 last week, off from market calls for a decline of 3,000 to 365,000.
The previous week’s figure was revised up to 368,000 from a previously reported 366,000.
The jobless claims numbers came a day after the release of the minutes from the Federal Reserve's most recent monetary policy meeting, where the U.S. central bank revealed that policy action may be needed.
"Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery," the minutes read.
The data sparked a dollar selloff on the notion that the Federal Reserve will announce plans to roll out a new round of quantitative easing.
Under quantitative easing, the Fed buys bonds such as Treasury holdings and mortgage-backed securities from banks, which weakens the dollar to spur recovery and sends gold rising as a side effect.
Gold held steady, however on new home sales figures out of the U.S.
Government data revealed that new homes sold in the U.S. outpaced expectations in July, climbing 3.6% to a seasonally adjusted 372,000 units last month and beating out forecasts for a 2.6% increase.
Elsewhere in the U.S., Federal Reserve Bank of St. Louis President James Bullard said the minutes were "stale" and added that since then, bullish economic indicators have released, which supported the dollar as well somewhat.
Retail sales and consumer sentiment figures have surprised on the upside since the Fed's last meeting that ran from July 31 to Aug. 1.
Elsewhere, Chinese manufacturing data disappointed and fueled talk that Beijing monetary authorities will introduce fresh stimulus measures to boost growth in the world’s second largest economy.
China’s HSBC Flash Purchasing Managers Index fell to a nine-month low of 47.8 in August from a final reading of 49.3 in July.
Elsewhere on the Comex, silver for September delivery was up 3.05% and trading at USD30.458 a troy ounce, while copper for September delivery was up 0.67% and trading at USD3.478 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery were up 1.89% and trading at USD1,669.25 a troy ounce, up from a session low of USD1,653.75 and down from a high of USD1,675.15 a troy ounce early during the session.
Gold futures were likely to test support at USD1,653.75 a troy ounce, the earlier low, and resistance at USD1,675.15, the earlier high.
U.S. weekly jobless claims disappointed on Thursday.
The U.S. Department of Labor reported earlier that the number of people filing for initial jobless benefits rose by 4,000 to a seasonally adjusted 372,000 last week, off from market calls for a decline of 3,000 to 365,000.
The previous week’s figure was revised up to 368,000 from a previously reported 366,000.
The jobless claims numbers came a day after the release of the minutes from the Federal Reserve's most recent monetary policy meeting, where the U.S. central bank revealed that policy action may be needed.
"Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery," the minutes read.
The data sparked a dollar selloff on the notion that the Federal Reserve will announce plans to roll out a new round of quantitative easing.
Under quantitative easing, the Fed buys bonds such as Treasury holdings and mortgage-backed securities from banks, which weakens the dollar to spur recovery and sends gold rising as a side effect.
Gold held steady, however on new home sales figures out of the U.S.
Government data revealed that new homes sold in the U.S. outpaced expectations in July, climbing 3.6% to a seasonally adjusted 372,000 units last month and beating out forecasts for a 2.6% increase.
Elsewhere in the U.S., Federal Reserve Bank of St. Louis President James Bullard said the minutes were "stale" and added that since then, bullish economic indicators have released, which supported the dollar as well somewhat.
Retail sales and consumer sentiment figures have surprised on the upside since the Fed's last meeting that ran from July 31 to Aug. 1.
Elsewhere, Chinese manufacturing data disappointed and fueled talk that Beijing monetary authorities will introduce fresh stimulus measures to boost growth in the world’s second largest economy.
China’s HSBC Flash Purchasing Managers Index fell to a nine-month low of 47.8 in August from a final reading of 49.3 in July.
Elsewhere on the Comex, silver for September delivery was up 3.05% and trading at USD30.458 a troy ounce, while copper for September delivery was up 0.67% and trading at USD3.478 a pound.