Prices of gold futures fell below the level of $ 1,200 on Thursday, extending losses of the previous session after data demonstrated that the number of people who filed for unemployment assistance in the United States in the past week fallen to its lowest level since 2000, fueling the optimism over the strength of the job market.
In addition, the US Federal Reserve kept interest rates unchanged, but offered small hints about when the first rate hike in nearly a decade.
On the Comex, gold futures for June delivery hit an intraday low of $1,191.20 a troy ounce, before trading at $1,202.70. In Singapore, gold lost 0.18% to $1,202.40 an ounce today.
In their monthly policy testimony Wednesday, the Fed said it would take in mind the labor market terms, inflation pressures and expectations of the international financial progress when deciding about the moment of a rate hike.
The Central Bank eliminated all reference calendars on a potential window raise rates its press release by adding to the doubt about when to a rate hike from the Fed.
The Department of Labor of the United States said the number of individuals who filed for unemployment benefits was reduced by 34,000 last week to 262,000 from the previous week’s total of 296,000. Analysts had expected initial unemployment claims to drop to 6000-290000 last week.
Simultaneously, the Commerce Department said personal expenditures grew by 0.4% last month, below the expectations of a gain of 0.5%. Consumer spending is the main source of growth of the economy, accounting for two thirds of economic activity.
A separate report showed that job costing in the United States, or the change in the price enterprises and the government is charged civilian workforce, increased 0.7% in the three months ended March 31, by beyond expectations of a 0.6% rise.
Analysts said besides a weak trend in the overseas markets , Gold futures prices fell at the Multi Commodity Exchange, gold for delivery in June eased by Rs 106 or 0.39% to Rs 27,132 per 10 gm.
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