Gold Ends Higher On Fed Stand, Stays Below $1,200

(RTTNews) - Gold futures pared much of the gains but still ended higher on Thursday, tracking rising global equity markets, even as the dollar trended higher after some upbeat jobs data from the U.S. showed initial claims for unemployment benefits to have declined more than expected.

Gold prices found some support after the U.S. Federal Reserve on Wednesday said it would remain 'patient' before hiking interest rates, with Chief Janet Yellen indicating the central bank was unlikely to hike rates in the next two meetings.

The precious metal also found support on some soft data from the U.S., with the Philly Fed's diffusion index for current activity tumbling to 24.5 in December from 40.8 in November.

Gold for February delivery, the most actively traded contract, inched up $0.30 percent to settle at $1,194.80 an ounce on the Comex division of the New York Mercantile Exchange on Thursday.

Gold for February delivery scaled an intraday high of $1,213.90 and a low of $1,188.50 an ounce.

On Wednesday, gold futures snapped a five-day losing streak to end at $1,194.50 an ounce, up $0.20, notwithstanding a strong dollar. Analysts believe Russia may be gearing up to sell its gold reserves as it handles a currency crisis that has seen its ruble drop to record lows against the dollar.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 721.56 tons on Thursday, from its previous close on Wednesday.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 89.31 on Thursday, up from its previous close of 89.08 late Wednesday in North American trade. The dollar scaled a high of 89.40 intraday and a low of 88.92.

The euro trended lower against the dollar at $1.2279 on Thursday, as compared to its previous close of $1.2343 late Wednesday in North American trade. The euro scaled a high of $1.2353 intraday and a low of $1.2268.

In economic news from the U.S., a Labor Department report showed initial jobless claims to have declined by 6,000 to 289,000 in the week ended December 13. Economists expected claims at 295,000, up from previous week's unrevised figure of 294,000.

A report from the Federal Reserve Bank of Philadelphia showed continued increase in regional manufacturing activity in December, although the pace of growth in the sector slowed substantially. The Philly Fed said its diffusion index for current activity tumbled to 24.5 in December from 40.8 in November. Economists expected the index to drop to a reading of 25.0.

Meanwhile, the Conference Board 's leading economic index rose in line with expectations, moving up by 0.6 percent in November following a downwardly revised 0.6 percent increase in October.

Meanwhile, German business confidence improved to a score of 105.5, rising for the second straight month to a 4-month high as expectations of firms brightened while their current assessment remained unchanged in December, a survey by Ifo institute showed.

U.K. retail sales growth accelerated unexpectedly in November as consumers boosted their spending on "Black Friday" a day after Thanksgiving, marking the start of the holiday season. Retail sales volume including automotive fuel increased 1.6 percent from October, the Office for National Statistics said Thursday. This was the biggest monthly rise since last December. The monthly growth rate was expected to slow to 0.4 percent from 1 percent in October.

From Europe, the Swiss National Bank decided in an unscheduled meeting to cut interest rate to -0.25 percent.