FU: Gold futures pare gains after better-than-expected U.S. data
Futures Pros – Gold futures pared gains on Thursday, retreating from a 2-day high, as the U.S. dollar strengthened after the release of better-than-expected U.S. economic data.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD 1,348.05 a troy ounce during European afternoon trade, gaining 0.86%.
It earlier rose to USD 1,358.47 a troy ounce, its highest price since November 16.
Earlier in the day, official U.S. data showed that the number of individuals filing for initial jobless benefits in the week ending November 13 rose less-than-expected.
Meanwhile, a separate report said that manufacturing activity in the Philadelphia-area increased significantly more-than-expected, rising to the highest level since February.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.50% during European morning trade.
Gold prices often move inversely to the U.S. dollar, as gold becomes less expensive for buyers using other currencies.
Meanwhile, global financial service provider Barclays said in a report earlier in the day that gold price could potentially advance by 9.6% to hit USD 1,485.00 an ounce by the end of 2010.
Elsewhere, silver for December delivery extended early gains, soaring 3.14% to trade at a 4-day high of USD 26.41 a troy ounce during European afternoon trade.
Earlier in the day, leading industry research group GFMS Limited said it expected silver prices to reach USD 30.00 an ounce in 2011, adding that “The main driver of the price remains investment demand”.
