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.
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.
"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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