RTTNews - Gold finished lower on Thursday and surrendered most of its gains from the previous session. A disappointing employment report and stronger U.S. dollar dragged the precious metal into negative territory.
August gold ended at $931, down $10.30 for the session. Prices reached as high as $942.10 and later fell as low as $926.60.
A stronger U.S. dollar reduced gold's hedge appeal. The greenback touched above 1.4000 against the euro and also climbed higher against the pound. With stocks lower, traders favored lower-yielding currencies.
Meanwhile, the big Labor Department report showed non-farm payroll employment fell by 467,000 jobs in June following a revised decrease of 322,000 jobs in May. Economists predicted a decrease of about 365,000 jobs compared to the loss of 345,000 jobs originally reported for the previous month.
A separate report showed initial claims fell to 614,000 from the previous week's revised figure of 630,000. Economists had been expecting claims to fall to 615,000 from the 627,000 originally reported for the previous week.
The Commerce Department report showed that orders for manufactured goods rose 1.2 percent in May following a downwardly revised 0.5 percent increase in April. Economists had expected orders to rise 0.9 percent compared to the 0.7 percent increase originally reported for the previous month.
August-stamped gold rallied $13.90 on Wednesday on a weaker dollar. The metal reached as high as $947.00 in intraday trading. The gain lifted gold away from a weekly low and erased some of more than 5% decline from last month.
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