Gold futures lost ground Thursday, turning slightly lower after a fall in weekly U.S. jobless claims underpinned support for stocks and other risky assets, dulling the yellow metal’s haven appeal.
Gold for February delivery GCG20, +0.07% on Comex was off 70 cents, or less than 0.1%, at $, 479.50 an ounce, while March silver SIH20, +0.26% rose 1.4 cents, or 0.1%, to $16.93 an ounce.
The Labor Department said the number of Americans who applied for first-time unemployment benefits fell to the lowest level in seven months in the week ended Nov. 30, falling 10,000 from the previous week to 203,000.
Gold rallied earlier in the week as equities saw sharp losses amid jitters over U.S.-China trade talks. Stocks bounced higher Wednesday and futures pointed to further gains on Thursday after news reports indicated negotiations remained on track.
Analysts said gold’s downside may be limited.
“Trade uncertainty and global economic weakness will keep gold prices supported in the short-term,” said Edward Moya, senior market analyst at OANDA, in a note.
Recession concerns remain after data showed a fall in German manufacturing orders in October, he said, adding that if the U.S. doesn’t see a rebound in October factory orders later Thursday morning, gold cold attempt a retest of the Wednesday high just below $1,490 an ounce.
U.S. October factory orders data is de at 10 a.m. Eastern. Economists surveyed by MarketWatch produced a consensus forecast for a 0.2% rise after a drop of 0.6% a month earlier.
January platinum PLF20, -1.13% declined 1.6% to $887.50 an ounce, while March PAH20, -0.55% fell 1.2% to $1,823.70 an ounce.
March copper HGH20, +0.30% rose 0.5% to $2.673 a pound.