GOLD declined slightly today as stronger-than-expected jobless data shaved off some of the metal's recent haven premium.
But losses were kept in check as the market remained fretful about the pace of the economic recovery.
The most actively traded gold contract, for December delivery, fell $US3.60, or 0.3 per cent, to settle at $US1237.70 an ounce on the Comex division of the New York Mercantile Exchange.
Nevertheless, ahead of a second-quarter US gross domestic product revision tomorrow, "gold still looks pretty attractive to a lot of people," said Dan Cook, Chicago-based senior market analyst with brokerage firm IG Markets. "It doesn't look like people are too convinced it's going to be a good number tomorrow."
Economists expect to see the initial estimate of 2.4 per cent growth cut to a more modest 1.3 per cent gain.
That would cap a week of gold-supportive data showing the economy remains anaemic.
KEY COMMODITY PRICES: copper, oil, gold, silver, livestock and wheat
The precious metal has gained after data showed US new-home buying dropped in July to a record low, figures revealed demand for US manufactured durable goods increased far less than expected, and a report showed that existing home sales plunged to their lowest level in 15 years.
Because gold isn't as linked to economic cycles as industrial commodities like oil and copper, the metal is often considered a so-called safe-haven investment thought to hold its value more strongly than other assets like equities or currencies during economic turmoil.
In the latest session, the metal pulled back a bit after a government report showed the number of US workers making new claims for jobless benefits fell last week by more than expected. Initial unemployment claims declined by 31,000 when economists had been expecting a drop of 10,000.
Nevertheless, at 473,000, claims still remain at an elevated level, and gold prices are staying near their all-time highs above $US1260, hit in June.
"It's not falling apart," said Stephen Platt, analyst with Chicago-based Archer Financial Services.
Comex silver futures also declined, with December metal dropping US5 cents, or 0.3 per cent, to settle at $US19.022.
The jobless numbers helped prices for platinum and palladium, which are primarily used in automobiles to scrub pollutants from exhaust. Nymex October platinum gained 0.8 per cent while December palladium rose 2.2 per cent. The US dollar denominated metals also gained as the greenback fell and as participants viewed recent price declines as attractive places to buy.
