U.S. gold futures and gold price in the spot market gave up gains of Wednesday’s early trades as the U.S. economic data released came better than expected. Moreover, U.S. 10-year yields rose, which affected the gold market and sent the price lower.
Comex gold futures for February delivery were down by 0.2% to be traded at $1,239.60 per ounce, while gold on the spot market was traded at $1,240.10. U.S. Treasury bond yields were up by 2.761%.
The weekly U.S. jobless claims dropped 10,000 to reach 316,000 and the consumer sentiment rose from 73.2 in October to 75.1 in November. Chicago Purchasing Managers Index (PMI) dropped to 63 in November from 65.9 in October.
The data release caused the US dollar to gain strength, and boosted equities performance. The Dow Jones Industrial Average was up by 32 points.
Technically speaking, gold prices suffered due to the bulls’ inability to hold $1,250 level, giving gold bears’ technical advantage. Moreover, many traders are expected to take Friday off, to have a 4-days weekend with Thursday, Thanksgiving holiday.
These new figures increase the probability of the Fed might start curbing economic stimulus earlier than the previously estimated date on March.