Gold futures fell for the first time in seven sessions as fewer Americans filed applications for unemployment benefits last week, crimping demand for the precious metal as alternative investment.
Jobless claims fell to a one-month low of 312,000 in the week ended June 21, government data showed. Through yesterday, the Standard & Poor’s 500 Index of equities rose 23 percent in the past 12 months, while gold climbed 3.7 percent as the Federal Reserve tapered monetary stimulus amid gains in the labor market.
“People are not rushing to gold as the economy is showing some signs of improvement,” Frank Lesh, a trader at FuturePath Trading LLC in Chicago, said in a telephone interview. “Also, equities are winning all the money because they continue to rise higher.”
On the Comex in New York, gold futures for August delivery dropped 0.5 percent to $1,315.40 an ounce at 9:07 a.m.. On June 24, the price reached $1,326.60, the highest for a most-active contract since April 15.
With gold close to a two-month high, physical demand “remains lacking,” Australia & New Zealand Banking Group Ltd. said in a note.
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