1st LD Writethru: Gold down on strong U.S. economic data

Gold futures on the COMEX division of the New York Mercantile Exchange fell Thursday as positive U.S. data put pressure on the precious metal.

The most active gold contract for August delivery lost 6.2 U.S. dollars, or 0.52 percent, to settle at 1,180.40 dollars per ounce.

Gold was put under pressure as a report released Thursday by the U.S. Department of Labor showed jobless claims were extremely low, with initial jobless claims rising by 2,000 to 279,000 during the week of June 6. Analysts noted that the four-week average rose for a third straight time but only by 3,750 to 278,750.

The precious metal was put under additional pressure as the retail sales report released by the U.S. Census Department Thursday showed retail sales increasing by 1.2 percent in May.

These two positive reports may have increased anticipation for a possible rate hike from the U.S. Federal Reserve. Analysts originally believed that interest rates could rise as early as June, but due to worse-than-expected jobs data in March, now predicted that interest rates will rise in the fall. The next Fed meeting is scheduled for June 15, when investors expect additional news on the timing of a rate increase, but analysts caution that a June increase in the Fed's interest rate is still unlikely.

Silver for July delivery rose 0.1 cent, or 0.01 percent, to close at 15.96 dollars per ounce. Platinum for July delivery fell 10 dollars, or 0.90 percent, to close at 1,105.20 dollars per ounce. Endite