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Gold ends about 1% lower in wake of strong US data

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Gold ended the trading session about 1 percent on Thursday on technical selling after prices broke below $1,300 an ounce, and as U.S. jobless claims data and consumer prices pointed to a firming economy.

Palladium and platinum retreated after a three-day rally spurred by rising labor tensions in major producer South Africa.

New applications for U.S. unemployment benefits hit a seven-year low last week while consumer prices in April recorded their largest increase in 10 months.

Symbol
Name
Price
 
Change
%Change
Volume
GOLD
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GOLD/USD
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SILV/USD
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SILVER
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PALL/USD
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PLAT/USD
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"Gold's fall is largely technically driven as prices have traded around the psychological support at $1,300 an ounce, as investors digested the U.S. economic reports today," said Howard Wen, metals analyst at HSBC.

U.S. gold futures for June delivery settled 0.9 percent lower at $1,293.60 an ounce. Spot gold, meanwhile, was last down 0.8 percent at $1,295 an ounce.

Gold, used by some investors as a hedge, has recently risen when Wall Street stocks fell, but that inverse correlation did not hold on Thursday. U.S. equities slid after disappointing earnings from bellwether retailer Wal-Mart Stores Inc overshadowed the positive economic reports.

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