FRX: Gold futures turn higher after U.S. jobless, housing data
Forexpros - Gold futures erased losses to trade modestly higher during U.S. morning hours on Thursday, as mixed U.S. jobs and housing data underlined the case for fresh easing measures in the U.S.
On the Comex division of the New York Mercantile Exchange, gold futures for October delivery traded at USD1,607.45 a troy ounce during U.S. morning trade, adding 0.2%.
Prices fell by as much as 0.2% earlier to trade at a session low of USD1,601.05 a troy ounce.
Gold futures were likely to find near-term support at USD1,590.25 a troy ounce, Wednesday’s low and the lowest since August 3 and resistance at USD1,616.75, the high from August 14.
Gold futures turned higher after official data showed that the number of people who filed for unemployment assistance in the U.S. last week rose slightly.
The U.S. Department of Labor said the number of individuals filing for initial jobless benefits rose by 2,000 to a seasonally adjusted 366,000 last week, compared to expectations for an increase of 1,000 to 365,000.
The previous week’s figure was revised up to 364,000 from a previously reported 361,000.
A separate report showed that U.S. housing starts fell by 1.1% in July to a seasonally adjusted 0.746 million, compared to expectations for a decline of 0.5% to 0.757 million.
But the number of building permits issued in July rose 6.8% to a seasonally adjusted 0.812 million, compared to expectations for an increase of 1.2% to 0.770 million.
The reports sparked fresh speculation that the Federal Reserve may turn to fresh stimulus measures in the near future to shore up growth.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would pump more money into the financial system.
Market players are already beginning to focus on an annual meeting of economists and central bankers in Jackson Hole, Wyoming, at the end of August.
Expectations of monetary stimulus tend to benefit gold, as the metal is seen as a safe store of value and inflation hedge.
Elsewhere on the Comex, silver for September delivery added 0.2% to trade at USD27.86 a troy ounce, while copper for September delivery rose 0.35% to trade at USD3.361 a pound.
