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Gold Futures Snap 3-day Winning Streak, Settle Modestly Lower

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Gold Futures Snap 3-day Winning Streak, Settle Modestly Lower

Gold futures settled lower on Thursday after spending almost the entire session in negative territory with traders closely following a slew of economic data from the U.S., and tracking treasury yields and dollar movements.

However, a weak dollar limited gold’s downside. The dollar index, which recovered to around 90.10 after falling to a low of 89.89, was down 0.1% at 89.96 a little while ago.

Federal Reserve Vice Chairman for Supervision Randal Quarles said Wednesday that he was prepared to open talks on reducing the emergency support measures if the economy continues to power out of the health crisis.

Friday’s reading on inflation said to be preferred by the Fed, is likely to have a significant impact on the outlook for monetary policy.

Gold futures for August ended down by $5.30 or about 0.3% at $1,898.50 an ounce, losing ground after three successive days of gains.

Silver futures for July ended higher by $0.063 at $27.940 an ounce, while Copper futures for July settled at $4.6630 per pound, gaining $0.1335.

Data released by the Labor Department said initial jobless claims in the U.S. slid to 406,000 in the week ended May 22nd, a decrease of 38,000 from the previous week’s unrevised level of 444,000. Economists had expected jobless claims to dip to 425,000.

Jobless claims decreased for the fourth consecutive week, once again falling to their lowest level since hitting 256,000 in the week ended March 14, 2020.

A report from the Commerce Department showed an unexpected pullback in durable goods orders in April, although the decrease was largely due to a steep drop in orders for transportation equipment. The report showed durable goods orders tumbled by 1.3% in April after jumping by an upwardly revised 1.3% in March. Economists had expected durable goods orders to climb by 0.7% in April.

The Commerce Department also released a report showing the pace of U.S. economic growth in the first quarter was unrevised from the advance estimate. The report showed real gross domestic product spiked by 6.4% in the first quarter, unchanged from the estimate provided last month. Economists had expected a modest upward revision in the pace of GDP growth to 6.5%.

Meanwhile, a report released by the National Association of Realtors showed pending home sales in the U.S. unexpectedly tumbled to their lowest level in nearly a year in the month of April.

The material has been provided by InstaForex Company – www.instaforex.com