(RTTNews) - Gold dropped sharply and fell below $700 an ounce for the first time in more than a year. December gold ended $712.60, down $22.60 on the session. The metal fell as low as $695.20, its lowest intraday level since September 2007.
The dollar also maintained most of its recent gains, reducing the need for traders to turn to gold as a hedge investment. After soaring to a 23-month high of 1.2727 versus the euro on Wednesday, the dollar leveled off near 1.28 Thursday morning. The greenback also remained near a five-year high of 1.6136 against the pound and hit a four-year high of 1.2738 versus the Canadian dollar.
Gold has been trending sharply lower for almost two weeks and has lost nearly $200 from its highest crossing of October. On a long-term basis, the precious metal has lost about 30% from its record $1,033.90 on March 17.
On the economic front Thursday, Department of Labor report showed that jobless claims rose to 478,000 the previous week's revised figure of 463,000. Economists had expected jobless claims to edge up to 465,000 from the 461,000 originally reported for the previous week.
Crude oil turned higher on Thursday as traders took advantage of the lowest prices in more than a year. Light sweet crude climbed to $68.01, up $1.26 on the session. Prices hit as high as $68.50 in overnight deals.
Traders awaited the results of the Organization of Petroleum Exporting Countries special meeting on Friday in Vienna. Signs point to the group cutting production by about 2 million barrels amid sharply declining prices.
