MSN: Gold pares gains after US jobless claims data
LONDON, Aug 26 (Reuters) - Gold prices cut a three-day rally and turned negative after data on Thursday showed new U.S. unemployment claims fell by more than expected last week, erasing some investor pessimism over the economic outlook.
Spot gold was last bid at $1,237.40 an ounce at 1238 GMT, down from $1,239.00 late on Wednesday and off a session high of $1,244 an ounce, its highest since late June.
The U.S. government said initial claims for state unemployment benefit fell 31,000 last week to a seasonally adjusted 473,000, beating forecasts for a reading of 490,000.
Stocks rose, the dollar pared losses against the yen and bond prices fell after the data assuaged some of the concern about the ability of the world's largest economy to generate jobs as it recovers.
