By Myra P. Saefong, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures fell Thursday, pulling back after a two-session win, as upbeat U.S. economic data eased investment demand for the metal and comments from the European Central Bank president calmed concern about Europe’s debt crisis.
Gold for August delivery GC1Q -0.07% fell $1.10 to $1,528.10 an ounce on the Comex division of the New York Mercantile Exchange. The contract tallied a gain of nearly $47 an ounce over the past two trading sessions.
“With no surprises from the European interest-rate decisions and U.S. ADP private-sector payrolls and same-store sales results coming in a lot stronger than had been expected, some of the fear that had gripped markets for the last two days appears to be easing a bit for now,” said Colin Cieszynski, market analyst at CMC Markets, in a research note.
The ECB will suspend the application of the minimum credit- rating threshold for debt instruments by the Portuguese government, the central bank’s president, Jean-Claude Trichet, said. Trichet also said the ECB remains opposed to a selective default for Greece.
The ECB, as expected, delivered its second rate increase in three months on Thursday, lifting its refi rate to 1.5% from 1.25%. Read more about the rate hike.
Also pressuring gold were upbeat figures on U.S. employment.
Private-sector employment rose 157,000 in June, according to Automatic Data Processing Inc.’s employment report, in what could be a signal that the recent economic soft patch may not last long. Read about the ADP data.
New applications for unemployment benefits fell by 14,000 last week to a seasonally adjusted 418,000, the Labor Department said. Read about jobless claims.
September copper HG1U +2.36% gained 8.25 cents to $4.42 a pound. Japan’s Cabinet Office reported that core machinery orders swung to a 3% gain in May from April’s 3.3% fall. Read about Japan core machinery orders.
September palladium PA1U +1.14% added $7.90 to $781.10 an ounce and October platinum PL1V +0.28% rose to $1,737.90 an ounce, up $4.50.
