Gold prices rebounded after early weakness on Thursday and lifted the most active gold futures contract to a positive close after two successive days of losses, as the yield on long term U.S. Treasury Notes dropped a bit.
The yield on 10-year U.S. Treasury Notes dropped to around 1.66% today.
The dollar’s slight advance limited gold’s uptick. The dollar index, which fell to 90.59 from a high of 90.91, recovered subsequently to 90.85.
Gold futures for June ended up by $1.20 or less than 0.1% at $1,824.00 an ounce, after falling to their lowest level in a week earlier in the session.
Gold prices drifted lower earlier in the day as an acceleration in consumer inflation raised worries about whether the Fed will have to tighten its monetary policy sooner than it would like.
Silver futures for July edged lower by $0.185 or about 0.7% at $27.059 an ounce, while Copper futures for July settled at $4.6905 per pound, down $0.0455 or 1% from the previous close.
According to a report from the Labor Department, first-time claims for U.S. unemployment benefits fell by more than expected in the week ended May 8th, dipping to 473,000, a decrease of 34,000 from the previous week’s revised level of 507,000.
Economists had expected jobless claims to edge down to 490,000 from the 498,000 originally reported for the previous week. With the bigger than expected decrease, jobless claims once again fell to their lowest level since hitting 256,000 in the week ended March 14, 2020.
Another report from the Labor Department said its producer price index for final demand rose by 0.6% in April after jumping by 1% in March. Economists had expected producer prices to increase by 0.3%.
The report also showed the annual rate of producer price growth accelerated to 6.2% in April from 4.2% in March, with prices showing the biggest annual increase since 12-month data were first calculated in November of 2010.
The material has been provided by InstaForex Company – www.instaforex.com