NEW YORK: Gold prices fell over 1% on Thursday, as positive US economic data elevated hopes for a quick recovery and dented allure of the safe-haven metal. Spot gold fell 0.6% to $1,930.24 per ounce by 2:18 p.m. ET (1818 GMT), after falling earlier to a one-week low of $1,921.61.
US gold futures settled down 0.4% at $1,937.8. A drop in US jobless claims reported Thursday and positive manufacturing data reported earlier in the week are taking some shine off gold, said David Meger, director of metals trading at High Ridge Futures.
US weekly jobless claims fell below 1 million last week for the second time since the pandemic started, but did not signal a strong recovery in the labour market because the drop largely reflected a changed in the methodology used to address seasonal fluctuations in data.
But data earlier in the week boosted optimism about a steady recovery. New orders for US-made goods increased more than expected in July, while US manufacturing data showed activity accelerated to a near two-year high in August.
However, Federal Reserve officials have said further support for the economy is needed. Fed Governor Lael Brainard on Tuesday said the US central bank will need to roll out new efforts to help the economy overcome the impact of the pandemic in coming months.
"The Fed governor's take on a move to provide more stimulus cements the fact that the economy is still in a crisis and the little fall in safe-haven assets like gold we see are mere consolidation," Meger said.
Gold has gained 27% this year as the coronavirus pandemic battered global economies and prompted unprecedented stimulus measures.
"The fundamentals (still) look pretty strong for bullion with the virus threats still there, ultra-low interest environment and room for more stimulus to boost the economy," Edward Moya, senior market analyst at broker OANDA, said.
Elsewhere, silver fell 3% to $26.66 per ounce, while platinum fell 1.7%, to $890.52. Palladium rose 1.6% to $2,282.90, having hit its highest since March 31.
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