1st LD Writethru: Gold down on Iran talks, positive U.S. data

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Thursday as U.S. data showed an improving economy and the Iranian government reached a tentative agreement with six major world powers on its nuclear program.

The most active gold contract for June delivery fell 7.3 U.S. dollars, or 0.60 percent, to settle at 1,200.90 dollars per ounce.

The Iranian Foreign Minister issued a statement on Thursday afternoon indicating that six major world powers and Iran have reached a deal on Iran's nuclear program and have begun to draft the official text of the agreement, putting gold under pressure.

A better-than-expected report released by the U.S. Department of Labor put additional pressure on the precious metal as it showed initial jobless claims falling sharply during the March 28 week, dropping by 20,000 to 268,000. It is the lowest reading since April 2000.

Another report released by the U.S. Department of Commerce also dampened gold as the U.S. trade balance for February sharply narrowed on lower oil prices but also elsewhere. Businesses may be seeing softer demand or a stronger dollar is cutting into import prices. In February, the U.S. trade gap shrank to 35.4 billion dollars from a revised 42.7 billion dollar in January.

Silver for May delivery dropped 35.8 cents, or 2.10 percent, to close at 16.701 dollars per ounce. Platinum for July delivery fell 11.5 dollars, or 0.99 percent, to close at 1,154.50 dollars per ounce. Endite