Gold down on stronger U.S. dollar

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Thursday as U.S. data showed strength.

The most active gold contract for June delivery fell 3.40 U.S. dollars, or 0.28 percent, to settle at 1,220.40 dollars per ounce.

Gold came under pressure as the U.S. Department of Commerce released a report on Thursday showing durable goods orders stronger-than-expected as new orders added 3.4 percent during the month of April, while March was revised higher to 1.9 percent.

Analysts note that vehicles orders led the strength in April, increasing by 2.9 percent, and commercial aircraft added 65 percent. However the ex-transportation reading added only 0.4 percent.

Another report released on Thursday by the U.S. Department of Labor showed initial jobless claims falling by 10,000 to a lower-than-expected 268,000. This report was better-than-expected and put pressure on the precious metal.

Gold was prevented from falling further as the U.S. Dollar Index fell by 0.25 percent to 95.17 as of 19:30 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.

Silver for July delivery rose 8.20 cents, or 0.50 percent, to close at 16.343 dollars per ounce. Platinum for July delivery added 1 dollars, or 0.10 percent, to close at 995.80 dollars per ounce. Endit