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COMEX gold slumped early Thursday after claims for US unemployment benefits fell to their lowest level in 3-1/2 years last week, lifting the dollar and the prospect for a strong April payrolls number on Friday.
June gold was steadying from overnight slippage before the Labour Department said jobless claims fell to 315,000 from 340,000 the week before - a sign that the labour market is falling into step with the recovering economy. At 9:17 am EDT (1317 GMT), the contract was down $4.40 at $389.40 an ounce, trading from $394.90 to $388.50.
"It immediately came right back off again," said a floor broker. "If it stays down at these levels in the gold, I think we're heading somewhere around $385.50. It's a little bearish with the jobless claims."
Spot gold was quoted at $388.70/9.45, down from $393.35/4.05 at Wednesday's close. London's morning fix was $392.00.
The dollar rose against the euro, which was quoted at $1.2106/09, down from its close at $1.2166/69. A firm greenback makes gold more expensive, and a better sell, for non-dollar investors.
July silver fell $15.5 cents to $5.96 an ounce, trading from $6.14 to $5.93. Spot silver fetched $5.92/96, down from $6.11/15. The fix was $6.03 an ounce.
NYMEX July platinum was $8.50 lower at $797.00 an ounce. Spot platinum was quoted at $795.00/800.00.
June palladium was $2.05 easier at $252.00 an ounce. Spot was indicated $251.00/256.00.

Copyright Reuters, 2004

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