Gold pared gains on Thursday, slipping back below $1,100 an ounce as a steeper-than-forecast drop in U.S. jobless claims helped the dollar recover from earlier lows, though prices remained under pressure after this week’s plunge.
Gold posted its deepest one-day loss in nearly two years on Monday, pushing prices through key chart levels and setting it up for further weakness. Low prices tempted some buyers back to the market on Wednesday, but gains remained muted.
Spot gold was up 0.3 percent at $1,096.40 an ounce at 1428 GMT, off a high of $1,105.60. U.S. gold futures for August delivery were up $3.80 an ounce at $1,095.30.
Gold has been undermined this year by expectations that the U.S. Federal Reserve is on track to raise interest rates for the first time in nearly a decade, boosting the cost of holding non-yielding bullion and lifting the dollar.
“The markets are all focusing on a September rate hike, so assuming that is when it occurs, you have to think that gold is going to remain under downward pressure up until that point,” Citi analyst David Wilson said.