Futures & Commodities

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

Reuters with CNBC.com
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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.

Chart: Precious Metals

"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.

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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