Gold falls as stocks, dollar rally

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Thursday as New York stocks and U.S. Dollar rebounded.

The most active gold contract for June delivery declined by 5.9 U.S. dollars, or 0.47 percent, to settle at 1,252.80 dollars per ounce.

Boosted partially by the latest economic data, the Dow Jones Industrial Average rose 104.18 points, or 0.51 percent and the NASDAQ Composite Index climbed 48.96 points, or 0.81 percent as of 1820 GMT. When equities post gains, the precious metal usually falls.

According to the Federal Reserve Bank of Philadelphia, manufacturing index in the area jumped to a reading of 38.8 in May from 22 in April, showing unexpected strength.

Meanwhile, data from the U.S. Department of Labor, also released on Thursday, said initial jobless claims fell by 4,000 to 232,000 in the week ending May 13.

Another factor which led to the fall of gold was the rally of U.S. dollar index. It rose 0.61 percent to 97.99 as of 1809 GMT.

The index is a measure of the dollar against a basket of other major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall.

As for other precious metals, silver for July delivery fell 23.6 cents, or 1.40 percent, to close at 16.67 dollars per ounce. Platinum for July delivery was down 9.3 dollars, or 0.98 percent, to close at 936.8 dollars per ounce. Endite