Gold futures sold off on Thursday, losing more than $23 to end at their lowest level in two weeks, as a sell-off in oil prices and a stronger dollar dulled investment appeal for the precious metal, setting prices up for a third-straight day of declines
Gold futures sold off on Thursday, losing more than $23 to end at their lowest level in two weeks, as a sell-off in oil prices and a stronger dollar dulled investment appeal for the precious metal, setting prices up for a third-straight day of declines.
Gold for August delivery dropped $23.30 to finish at $881.70 an ounce, its weakest close since May 14, on the New York Mercantile Exchange.
Gold, often used as a hedge against inflation, has been tracking gains in oil recently.
Crude oil for July delivery fell sharply, and was off $4.41, or 3.4%, to close at $126.62 a barrel, as traders reconsidered recent supply concerns.
A stronger dollar also pressured gold. A firmer U.S. unit makes dollar-denominated commodities, such as crude and oil, more expensive for holders of other currencies.
The dollar advanced on the back of an upward revision to first-quarter growth in the U.S., while the market showed little reaction to an increase in jobless claims in the latest week.
"Today's economic platter of statistics offers rich pickings for those who read the tea leaves therein in order to gauge the current tilt in the U.S. economy," said Jon Nadler, a senior analyst at Kitco Bullion Dealers, in a note to clients.
The dollar index, which tracks the greenback against a basket of six major currencies, was at 72.971, compared with 72.522 in late North American trading Wednesday.
Silver prices followed gold prices lower. July silver shed 89 cents, or 5.1%, to finish at $16.52 an ounce.
July platinum fell $76.70, or 3.7%, to $1,990.20 an ounce while June palladium shed $9.50 to $426.75 an ounce on Nymex. July copper lost 13 cents to end at $3.56 a pound.
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