Gold extended losses into a second day on Thursday as a firm dollar and early strength in bond yields dented its investment appeal, and weighed also by uncertainty over the timing of a US interest rate increase. Spot gold was down 0.8 percent at $1,182.31 an ounce by 2:14 p.m. EDT (1814 GMT), holding below the key $1,200 level for a fifth day. US gold futures for June delivery settled down $8.10 at $1,182.20 an ounce.
"Higher real yields rising are the more dominant factor of gold weakness at the moment," ABN Amro analyst Georgette Boele said. Gold has been trading in a relatively narrow trading range of around $80 an ounce between $1,142 and $1,224 since mid-February, compared to a range of around $150 in January. "Gold continues to fail ahead of tomorrow's payrolls data," said Steve Scacalossi, director and head of sales for TD Securities' Global Metals, in a market note. "Technically it is making lower highs each day and resistance is coming in around $1,193." Silver fell 1.3 percent to $16.29 an ounce. Platinum dropped 1.1 percent to $1,129 an ounce, while palladium was down 1.3 percent at $779 an ounce.
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