Investing.com - Gold futures fell to a one-week low on Thursday, as the euro sank against the dollar after ECB President Mario Draghi said the bank's degree of accommodation will need to be reexamined at its December meeting.
Gold for December delivery on the Comex division of the New York Mercantile Exchange dropped $1.40, or 0.12%, to trade at $1,165.70 a troy ounce during U.S. morning hours. It earlier fell to $1,162.90, the lowest since October 13.
The euro lost more than 1% against the dollar, while the dollar index, which measures the greenback's strength against a basket of other major currencies, was up 0.9% to 95.91, the strongest level since October 6.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
European Central Bank President Mario Draghi said policymakers will reexamine the degree of monetary policy stimulus at its December meeting.
Draghi added that the central bank's QE program will continue until September 2016 or beyond if needed until inflation adjusts toward 2.0%.
The comments came after the ECB held its benchmark interest rate at a record-low 0.05%. The central bank also kept its marginal lending at 0.30% and left its deposit facility rate unchanged at -0.20%.
Meanwhile, in the U.S., the Department of Labor said the number of individuals filing for initial jobless benefits increased by 3,000 last week to 259,000. Analysts had expected jobless claims to rise by 9,000 to 265,000 from the previous week’s total of 256,000.
First-time jobless claims have held below the 300,000-level for 32 consecutive weeks, which is usually associated with a firming labor market.
Investors have been trying to gauge when the Federal Reserve will raise interest rates for the first time in nearly a decade after recent economic reports offered a mixed picture of the U.S. economy.
The timing of a Fed rate hike has been a constant source of debate in the markets in recent months. The U.S. central bank has two more scheduled policy meetings before the end of the year: next week and in December.
Elsewhere in metals trading, copper for December delivery on the Comex division of the New York Mercantile Exchange tacked on 3.4 cents, or 1.45%, to hit $2.395 a pound during morning hours in New York.