Gold prices drifted notably lower on Thursday after riskier assets including equities moved up on upbeat U.S. economic data and fading worries about trade war.
The dollar’s advance to a near 2-week high contributed as well to the yellow metal’s decline.
The dollar index rose to 97.80, gaining over 0.25%.
Data from the Labor Department showed a bigger than expected drop in initial jobless claims and the report from the Commerce Department showed a substantial increase in housing starts.
Gold futures for June ended down $11.60, or 0.9%, at $1,286.20 an ounce.
On Wednesday, gold futures for June ended up $1.50, or about 0.1%, at $1,297.80 an ounce.
Silver futures for July ended down $0.273, at $14.539 an ounce, while Copper futures for July settled at $2.7480 per pound, gaining $0.0050 for the session.
The Labor Department report said initial jobless claims slid to 212,000 in the week ended May 11th, a decrease of 16,000 from the previous week’s unrevised level of 228,000. Economists had expected jobless claims to dip to 220,000.
A separate report from the Commerce Department showed a substantial increase in new residential construction in the month of April.
The Commerce Department said housing starts surged up by 5.7% to an annual rate of 1.235 million in April after climbing by 1.7% to a revised rate of 1.168 million in March.
Building permits, an indicator of future housing demand, also rose by 0.6% to a rate of 1.296 million in April after edging down by 0.2% to a revised rate of 1.288 million in March.
The pace of growth in regional manufacturing activity saw a significant acceleration in May, according to a report from The Philadelphia Federal Reserve.
Worries about trade war subsided a bit after the U.S. decided to delay imposing tariffs on imports of cars from EU for six months.
The material has been provided by InstaForex Company – www.instaforex.com
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