Gold Drops After US Jobless Claims USD Positive Figures

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.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza