Gold futures declined sharply on Thursday, giving up a substantial part of the gains they had recorded in the past couple of sessions, as the U.S. dollar rebounded from recent losses and political concerns eased after the UK lawmakers voted against a no-deal Brexit.
The dollar displayed strength against most major currencies, rebounding from recent weakness. The dollar index gained about 0.3%.
Gold futures for April ended down $14.20, or 1.1%, at $1,295.10 an ounce.
On Wednesday, gold futures ended up $11.20, or 0.9%, at $1,309.30 an ounce, the contract’s first close about the $1,300 mark in about two weeks.
Silver futures for May ended down $0.285, at $15.171 an ounce, while Copper futures for May ended at $2.8915 per pound, down $0.0440 from previous close.
In economic news, a report from the Labor Department showed U.S. import and export prices both rose by more than anticipated in the month of February.
The Labor Department said import prices climbed by 0.6% in February after inching up by a revised 0.1% in January. Economists had expected import prices to rise by 0.3% compared to the 0.5% drop originally reported for the previous month.
The report said export prices also increased by 0.6% in February after falling by a revised 0.5% in January. Export prices had been expected to tick up by 0.1% compared to the 0.6% decrease originally reported for the previous month.
First-time claims for U.S. unemployment benefits increased by more than expected in the week ended March 9th, according to a report released by the Labor Department on Thursday.
The report said initial jobless claims rose to 229,000, an increase of 6,000 from the previous week’s unrevised level of 223,000. Economists had expected jobless claims to edge up to 225,000.
After reporting a notable rebound in new home sales over the two previous months, the Commerce Department released a report on Thursday showing a substantial pullback in U.S. new home sales in the month of January.
Meanwhile, a report from the Commerce Department said new home sales plunged by 6.9% to an annual rate of 607,000 in January from a revised rate of 652,000 in December.
Economists had expected new home sales to edge down to a rate of 620,000 from the 621,000 originally reported for the previous month.
Key data from China today proved to be a mixed bag.
Growth in China’s industrial output fell to a 17-year low in the first two months of the year, but retail sales and fixed asset investment data topped forecasts, leaving investors wondering about the impact of tariffs.
The material has been provided by InstaForex Company – www.instaforex.com
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