Gold futures fell, heading for a weekly loss, as signs of gains in the U.S. economy eroded demand for the metal as a store of value.
Consumer confidence rose from a nine-week low as Americans grew more upbeat about the economy, and jobless claims were close to the lowest in almost seven years, data showed today. The Federal Reserve Bank of Philadelphia factory index, a gauge of regional manufacturing, climbed to 16.6 in April, topping estimates by analysts. Gold dropped 1.5% this week.
“These positive economic reports are pushing gold lower,” Fain Shaffer, the president of Infinity Trading Corp. in Indianapolis, said in a telephone interview. “There’s not really a compelling story to buy gold now, other than the situation in Crimea.”
Gold futures for June delivery fell 0.3 percent to $1,299.30 an ounce at 12:16 p.m. on the Comex in New York. Trading was 34 percent below the average in the past 100 days for this time, according to data compiled by Bloomberg. The market will be closed tomorrow for a public holiday.
Through yesterday, gold rose 8.4 percent this year on haven demand linked to the turmoil in Ukraine. Diplomats from the Eastern European country, Russia, the U.S. and the European Union met for talks on the crisis in Geneva today.