MW: Gold falls for third day, pacing losses in oil, stocks
Gold futures fell Thursday for a third straight session, pacing losses in crude oil and stock markets, while a weakening dollar limited the metal's decline.
Gold for February delivery was last down $8.70, or 1%, at $879.50 an ounce on the Comex division of the New York Mercantile Exchange. Gold has lost about $30 since closing at a four-month high of $908.80 Monday.
Crude-oil futures dropped more than 4% Thursday to nearly $40 a barrel, as more gloomy economic news in the U.S. increased demand worries. Falling crude prices tend to push gold prices lower, as they reduce the metal's appeal as a hedge against inflation.
Unemployment lines in the U.S. stretched to the longest on record, the Labor Department reported Thursday. Continuing jobless claims rose by 159,000 in the week ended Jan. 17 to a seasonally adjusted 4.78 million, the most since the government's records began in 1967. See Economic Report on jobless claims.
Meanwhile, orders for U.S.-made durable goods fell for a fifth straight month, down 2.6% in December on weaker demand for almost all products except defense-related items, the Commerce Department reported.
In the latest effort to resuscitate the economy, the House of Representatives approved an $819 billion economic stimulus plan late Wednesday by a 244-188 vote.
The bill would cut taxes for individuals and businesses, provide billions of dollars for infrastructure projects, help states balance their budgets and provide relief to millions of people who've lost their jobs or homes. See full story on the stimulus plan.
U.S. stock futures pointed squarely at a weaker start Thursday, as more companies reported weak earnings.
Limiting gold's losses, the dollar moved lower against most of its major rivals. The dollar index was last down 0.7% at 84.441. The greenback and gold tend to move in opposite directions.
In other metals trading Thursday, March copper fell 3.8% to $1.4385 a pound, while March silver fell 1.4% to $11.80 an ounce. March palladium was flat at $191 an ounce, while April platinum lost 0.4% to $958.80 an ounce.
Holdings in the SPDR Gold Trust , the largest exchange-traded gold fund, stood at 832.88 tons, unchanged from a day ago, according to the latest data from the ETF.
