Thursday gold declined in U.S. trading and got off from a monthly high. June gold moved to $918.30, down $10.30 on the session
Thursday gold declined in U.S. trading and got off from a monthly high. June gold moved to $918.30, down $10.30 on the session. The metal touched as high as $935.40 in electronic trading, its best level since April 18, but later fell as low as $917.10 in mid-day deals.
The dollar rebounded against the other major currencies, reducing gold's hedge value. The greenback reversed its course and moved away from recently-visited near-term lows against the euro and yen. Crude oil prices also dropped below $131 on Thursday, after topping $135 in electronic trading. That also lowered gold's appeal as a hedge option.
Gold had soared on Wednesday and reached a monthly high, adding $8.40 on the day. The metal added to its rally from Tuesday when it picked up $14.40 an ounce. Overall, gold has added more than $60 an ounce over the last five sessions. Gold re-crossed the $900 mark on Friday.
The metal had been trending higher for about 10 days. Stochastics and the RSI moved into overbought territory for June gold. If prices move past Monday's high crossing, the next upward target is $949.60, the high crossing of April 17. Support may be found at Tuesday's low crossing of $903.10.
Thursday morning, the Department of Labor released its report on initial jobless claims in the week ended May 17th, showing that jobless claims fell to 365,000 from the previous week's revised figure of 374,000. Economists had expected jobless claims to edge down to 370,000 from the 371,000 originally reported for the previous week.
U.S. home prices plunged at a record pace in the first quarter, a report from the Office of Federal Housing Enterprise Oversight revealed Thursday. U.S. home prices saw their sharpest decline in the 17 years since the government began tracking home data.