RTTNews - Gold climbed slightly off a two-month low on Thursday, as the U.S. dollar gave back some of its recent gains against the euro and sterling, adding to the precious metal's hedge appeal
August gold climbed to $916.20 an ounce, up $6.90 on the session. Prices reached as high as $918.90 an ounce after earlier hitting a low as $906.20 an ounce.
The dollar dropped to a weekly low against the euro after hitting a two-week high the day before. The greenback also moved into negative territory against the pound. Often, gold moves opposite the dollar because of the precious metal's hedge appeal.
Despite rumors that the Group of Eight leaders meeting in Italy would discuss an alternative to the dollar as the world's de facto reserve currency, there was no mention of the greenback in a draft declaration on the international monetary system released Thursday.
According to reports from L'Aquila, the Chinese called for a reformed reserve currency system but did not specifically mention the dollar.
On the economic front, a Labor Department report showed that jobless claims fell to 565,000 from the previous week's revised figure of 617,000. Economists had been expecting a more modest decrease to 603,000 from the 614,000 originally reported for the previous week.
With the bigger than expected decrease, weekly jobless claims fell below the 600,000 level for the first time since January.
Later, the Commerce Department said wholesale inventories fell 0.8 percent in May following a revised 1.3 percent decrease in April. Economists had expected inventories to fall by 1.0 percent compared to the 1.4 drop originally reported for the previous month.
In other metal trading, silver for September delivery climbed 8.3 cents to $12.935 an ounce and copper jumped 7.85 cents to $2.159 per pound
On Wednesday, gold dropped $19.80 an ounce on the session. The metal fell as low as $904.80 an ounce and moved below a support level.
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