Gold pulls back on profit-taking
Gold futures on the COMEX Division of the New York Mercantile Exchange edged lower, ending a 4- session winning streak on Thursday, as investors chose to lock in the gains they've amassed since the rally began last Friday. But a weaker dollar as well as downbeat U.S. employment and growth data helped gold pare some of its early losses.
The most active gold contract for June delivery slipped 3.9 dollars, or 0.3 percent, to 1,522.8 dollars per ounce.
The U.S. Labor Department announced Thursday the number of workers filing new claims for jobless benefits jumped by 10,000 last week, to 424,000, while economists were forecasting a decline of 4,000.
Meanwhile, U.S. gross domestic product, a measure of all the goods and services produced in the economy, rose at an inflation- adjusted rate of 1.8 percent during the first quarter of 2011, according to the U.S. Commerce Department, which is less than economists' estimates for a 2.2 percent growth rate.
The combination of weaker growth and employment data will simmer down market expectations of an interest rate hike by the Fed or implication of monetary policy normalization. Those sentiments undercut the greenback, but favored non-yielding gold due to lack of opportunity cost.
Meanwhile, the sagging greenback also offered some upward pressure on the bullion, as dollar-denominated commodities appear cheaper for investors using other currencies as dollar falls back.
A trader mentioned that the precious metal has to give back some of those gains it made in four previous sessions, as many investors chose to cash in profits before the long weekend and end of month.
Silver for July delivery lost 31.2 cents, or 0.8 percent, to 37. 33 dollars per ounce.
Source: Xinhua
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The most active gold contract for June delivery slipped 3.9 dollars, or 0.3 percent, to 1,522.8 dollars per ounce.
The U.S. Labor Department announced Thursday the number of workers filing new claims for jobless benefits jumped by 10,000 last week, to 424,000, while economists were forecasting a decline of 4,000.
Meanwhile, U.S. gross domestic product, a measure of all the goods and services produced in the economy, rose at an inflation- adjusted rate of 1.8 percent during the first quarter of 2011, according to the U.S. Commerce Department, which is less than economists' estimates for a 2.2 percent growth rate.
The combination of weaker growth and employment data will simmer down market expectations of an interest rate hike by the Fed or implication of monetary policy normalization. Those sentiments undercut the greenback, but favored non-yielding gold due to lack of opportunity cost.
Meanwhile, the sagging greenback also offered some upward pressure on the bullion, as dollar-denominated commodities appear cheaper for investors using other currencies as dollar falls back.
A trader mentioned that the precious metal has to give back some of those gains it made in four previous sessions, as many investors chose to cash in profits before the long weekend and end of month.
Silver for July delivery lost 31.2 cents, or 0.8 percent, to 37. 33 dollars per ounce.
Source: Xinhua
! Weekly review May 20 World Economic Forum China office marks fifth anniversary May 18 China, Pakistan joined in bonds of brotherhood May 20 'Central axis' of Beijing applies for world cultural heritage May 20 In pictures: Int'l 'Financial Security' symposium opens in Beijing May 21 The week in pictures May 16 Beijing aims for massive influx of overseas talent in 2011 May 16 Singapore election coverage shows Western arrogance May 16 Chinese naval helicopter conducts target practice in Gulf of Aden May 17 Strategies for harmony between militaries of China, US May 17 Pakistani Prime Minister hails China as true friend Editor
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