Gold down on positive data

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Thursday on positive U.S. Data.

The most active gold contract for December delivery fell 1.9 U.S. dollars, or 0.14 percent, to settle at 1,350 dollars per ounce.

Gold was put under pressure as a report released by the U.S. Department of Labor showed initial jobless claims decreasing by 1,000 to 266,000 during the week of August 8th. Analysts note that jobless claims remain at historically low levels which is a positive sign for the U.S. economy and gave investors confidence, driving them away from gold.

The precious metal was put under further pressure as the U.S. Dollar Index rose by 0.3 to 95.85 as of 17:45 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.

Although the U.S. central bank has left the door open for a rate increase during 2016, investors believe a rate hike is unlikely during the year. Previous Fed minutes led traders to believe that the Fed may raise rates from 0.50 to 0.75 during the December FOMC meeting. According to the CME Group's Fedwatch tool, the current implied probability of a hike from 0.50 to 0.75 is at 18 percent at the September 2016 meeting, 20 percent at the November 2016 meeting, and 50 percent at the December meeting.

Gold was put under additional pressure as the U.S. Dow Jones Industrial Average rose by 129 or 0.7 percent as of 18:00 GMT. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

Silver for September delivery fell 15 cents, or 0.74 percent, to close at 20.02 dollars per ounce. Platinum for October delivery dropped 26.4 dollars, or 2.23 percent, to close at 1,156.7 dollars per ounce. Enditem