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Gold Prices Move Modestly Lower As Jobs Report Looms

Gold Prices Move Modestly Lower As Jobs Report Looms

After ending the previous session nearly unchanged, the price of gold showed a modest move to the downside during trading on Thursday.

Gold for December slipped $5.60 or 0.3 percent to $1,808.90 an ounce after inching up $0.40 to $1,814.50 an ounce.

The modest decrease by the price of gold came as optimism about tomorrow’s closely watched monthly jobs report reduced the appeal of the safe haven asset.

With the monthly jobs report looming, the Labor Department released a report this morning showing a modest decrease in first-time claims for U.S. unemployment benefits in the week ended July 31st.

The report said initial jobless claims slipped to 385,000, a decrease of 14,000 from the previous week’s revised level of 399,000.

Economists had expected jobless claims to dip to 384,000 from the 400,000 originally reported for the previous week.

Chris Low, Chief Economist at FHN Financial, said the total number of unemployment recipients fell by 1.5 million between the June and July surveys, suggesting a “hefty” increase in employment in the monthly jobs report on Friday.

Economists currently expect the report to show employment surged up by 870,000 jobs in July after jumping by 850,000 jobs in June. The unemployment rate is expected to dip to 5.7 percent from 5.9 percent.

Meanwhile, a separate report from the Commerce Department showed the U.S. trade deficit widened by more than expected in the month of June, reaching a new record high.

The Commerce Department said the trade deficit widened to $75.7 billion in June from a revised $71.0 billion in May.

Economists had expected the trade deficit to widen to $74.1 billion from the $71.2 billion originally reported for the previous month.

The wider than expected trade deficit came as the value of imports jumped by 2.1 percent to $283.4 billion, while the value of exports rose by 0.6 percent to $207.7 billion.

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