Gold Drops to Near $1230 as Physical Demand Wanes

Gold fell around 1 percent on Thursday as stronger-than-expected economic data and upbeat corporate results boosted global equity markets, while the dollar index held near a one-week high and demand for physical metal eased.

Bullion posted its second straightly daily loss after data showed new claims for U.S. unemployment benefits held below 300,000 for a sixth straight week last week, suggesting the labor market was shrugging off jitters over growth.

The S&P 500 index soared more than 1.5 percent in a broad rally, as strong results from industrial bellwethers reassured investors that corporations continue to fare well despite concerns about global economic growth.


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