NEW YORK: Gold extended declines on Thursday after more strong economic readings from the US further soured bets that the Federal Reserve may ease up on interest rates hikes, with bullion also pressured by optimism for a debt ceiling deal.
Spot gold fell 1.4% to $1,954.81 per ounce by 11:45 a.m. EDT (1545 GMT), after earlier touching its lowest since April 3 at $1,951.73.
US gold futures were 1.4% lower at $1,957.50.
A lower-than-expected number of new US jobless claims last week was accompanied by a milder fall in a business index from the Philadelphia Fed.
Along with a relatively vibrant jobs market, some optimism over the debt ceiling negotiations has also strengthened the dollar and supported equities, denting safe-haven demand a bit, said David Meger, director of metals trading at High Ridge Futures.
“We’re no longer as positive on the gold market as we’ve been for really several months.” Pressuring gold, Wall Street turned higher and the dollar and 10-year Treasury yields climbed to multi-week peaks on the economic data.
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