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Gold futures trade near 1-week low ahead of U.S. economic reports

Published 22/10/2015, 08:03
Gold little changed near 1-week low ahead of U.S. data
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Investing.com - Gold futures struggled near one-week lows on Thursday, as investors looked ahead to U.S. economic reports on weekly jobless claims and existing home sales later in the day for further clues on the strength of the economy and the timing of an interest rate hike.

Gold for December delivery on the Comex division of the New York Mercantile Exchange inched up 90 cents, or 0.08%, to trade at $1,168.00 a troy ounce during European morning hours.

A day earlier, gold lost $10.40, or 0.88%. It earlier fell to $1,164.20, the lowest since October 13, as a stronger U.S. dollar dampened the appeal of the precious metal.

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.

The U.S. is to release a weekly report on initial jobless claims at 8:30AM ET Thursday, followed by a report on existing home sales for September at 10:00AM.

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.

Focus will also be on the European Central Bank's policy meeting later in the day. The ECB was expected to keep its monetary policy unchanged but could flag plans to enlarge its stimulus program.

Elsewhere in metals trading, copper for December delivery on the Comex division of the New York Mercantile Exchange tacked on 1.3 cents, or 0.53%, to hit $2.373 a pound during morning hours in London.

Copper prices have been under pressure in recent sessions as persistent worries about future demand from top consumer China weighed.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

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