MW: Gold contract trims losses following jobless claims rise
Platinum dives 5%, palladium off 8% on concerns over China growth chill
By Claudia Assis & Kate Gibson, MarketWatch
SAN FRANCISCO (MarketWatch) -- Gold futures fell Thursday amid persistent worries about the global economy, although bullion pared losses following data showing an unexpected rise in U.S. weekly jobless claims.
Gold futures for June delivery fell $4.70, or 0.4%, to $1,188.30 an ounce on the Comex division of the New York Mercantile Exchange. Platinum and palladium led losses among metals, off 5.3% and 8.2% respectively.
Oversold metals look "battered" but have yet to "stage a long overdue technical bounce," analysts at MF Global said in a note to clients Thursday. "The problem is that as long as the market defers such a move, the more likely it will be that we could see another leg lower. The next few days should be key," the added.
The number of people applying for unemployment benefits surged by 25,000 in the week ended May 15 to 471,000, the highest level in a month, the Labor Department said.
The four-week average of initial claims -- a better measure of employment trends than the volatile weekly number -- rose by 3,000 to 453,500. Economists surveyed by MarketWatch expected initial claims would drop.
Weakness in metals and other commodities such as oil mirrored similar moves in U.S. stocks and the euro. U.S. stocks opened lower on Thursday and oil traded below $71 a barrel.
Platinum, palladium and other metals used in industrial applications are also suffering from "the growing perception that Chinese growth is indeed going to slow," said John Mothersole, an analyst with IHS Global Insight in Washington, DC.
"The euro crisis has only added to the downward momentum," he said. China is the top consumer of metals and any hints of a slowdown would impact commodities prices deeply.
Platinum for July delivery lost $85.30 to $41,520.40 an ounce. Palladium for June delivery retreated $39.50 to $420.20 an ounce.
Copper bucked the trend to post gains. Copper for July delivery ticked moderately higher to $2.96 a pound.
Germany on Tuesday imposed a ban on some bearish bets in trying to curb financial speculation that officials there say is to blame for the debt crisis in the euro zone.
Europe's common currency (CUR_EURUSD 1.2352, -0.0077, -0.6197%) fell to $1.234 from $1.242 in late North American trading Wednesday.
