Gold drops to four month low as it drops for fourth straight session
Bullion prices ended 0.2% lower at Comex on Thursday, 25 May 2014. Gold futures suffered their fourth straight losing session on Thursday dropping to four month lows. On the economic front, U.S. data was mostly upbeat, pressuring prices for gold as they dulled the metal's safe-haven appeal.
Gold for August delivery fell $2.60, or 0.2%, to settle at $1,257.10 an ounce on the Comex division of the New York Mercantile Exchange. Prices have now tallied a four-session loss of roughly 3% and based on the most-active contracts.
July silver on Thursday also lost 4.5 cents, or 0.2%, to $19.01 an ounce after a dip below the $19 level.
Trading was quieter overnight with many markets pausing as focus is turning to next week's monthly monetary policy meeting of the European Central Bank. It's widely believed the ECB will announce further monetary policy stimulus measures at that meeting. Recent weak European Union economic data and fears of deflation setting in for the EU are solid reasons for the ECB to make a move next week.
Latest US economic data showed today that first quarter GDP was revised down to -1.0% in the second estimate from a 0.1% gain in the advance estimate. GDP increased 2.6% in Q4 2013. Almost the entire revision was due to weaker inventory data. Excluding inventories, real final sales were virtually unchanged in the second estimate, up 0.6% vs. a 0.7% gain in the advance estimate. Real final sales are still well below 2013 levels.
The initial claims level fell to 300,000 for the week ending May 24 from a slightly upwardly revised 327,000 (from 326,000) for the week ending 17 May. The consensus expected the initial claims level to fall to 318,000. Layoff levels are showing no signs of stability.
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