Gold futures on the COMEX Division of the New York Mercantile Exchange ended lower on Thursday (19/1/2017), due to the reinforcement of us economic data and a stronger u.s. dollar pressuring precious metals although us equities weakened.
The most active gold contract for February delivery was down 10.6 us dollars, or 0.87 per cent, being settled at 1,201.50 u.s. dollars per ounce.
The report “housing starts” (a newly built home) which was released by the U.S. Census Department on Thursday shows began to rise to the level of 1.226 million unit seasonally adjusted during December, and building permit increases to the level of 1,210 million during the month.
Analysts noted that the size of the “housing starts” are higher than the consensus estimate, but still in the range of consensus, potentially putting a little pressure on gold.
Gold was put under further pressure since the U.S. Labor Department released a report on weekly unemployment claims in the week ending 14 January, which showed initial jobless claims fell to 15,000 234,000, numbers that are much better than expected and far beyond the reach of consensus.
Analysts believe that these data provide extensive pressure on gold and is likely to increase expectations for the big January employment report.
Precious metals were also put under pressure when the Philadelphia Federal Reserve released a report on Thursday that showed the general business conditions index reaches the level of 23.6, far above the range of consensus.
Analysts noted that this was the best figures from this measure since November 2014, and the possibility of providing extensive pressure on gold.
The U.S. dollar index climbed 0.05 percent to 101.34 at 18.00 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar usually move in opposite directions, which means if the dollar rises then gold futures would fall because the gold is measured by the dollars become more expensive for investors.
Gold was given little support when the US Dow Jones Industrial Average was down 0.55 points or 109.40 percent at 18.00 GMT. Analysts noted that when equities registered a loss then precious metal usually rises, as investors seek a safe place. Conversely, when us equities registered a profit then the precious metal usually go down.
Silver for March delivery dropped 27.2 cents, or 1.57 per cent, to close at 17.002 u.s. dollars per ounce. Platinum for April delivery down 15.5 u.s. dollars, or 1.59 per cent, to close at 956.40 u.s. dollars per ounce…(Red).