Gold Ends Lower Ahead Of Crucial Jobs Data

(RTTNews) - Gold futures ended lower for a fourth straight session on Thursday, ahead of the monthly jobs report, after data showed manufacturing activity in the U.S. to have risen more than expected, with consumer spending and personal income on the rise.

Gold prices extended recent losses, after the U.S. Federal Reserve decided to reduce its monthly bond-buying program by $10 billion. A report showing weaker than expected growth in Chinese manufacturing activity also contributed to the precious metal's decline.

Investors now look forward to the U.S. jobs data for April, due Friday.

Gold for June delivery, the most actively traded contract, dropped $12.50 or 1 percent to close at $1,283.40 an ounce on the Comex division of the New York Mercantile Exchange on Thursday.

Gold for April delivery scaled an intraday high of $1,293.00 and a low of $1,277.30 an ounce.

On Wednesday, gold futures extended losses to a third straight session, edging down ahead of the Federal Reserve's policy meet.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, dropped to 787.94 tons from its previous close of 792.14 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 79.51 on Thursday, up from its previous close of 79.51 late Wednesday in North American trade. The dollar scaled a high of 79.54 intraday and a low of 79.41.

The euro traded higher against the dollar at $1.3869 on Thursday, as compared to its previous close of $1.3867 late Wednesday in North America. The euro scaled a high of $1.3889 intraday and a low of $1.3864.

In economic news from the U.S., the Labor Department's report showed initial jobless claims to have risen by 14,000 to 344,000 in the week ended April 26. Economists expected jobless claims to dip to 320,000.

A report from the Commerce Department showed an unexpected rise in both personal income and spending in March. While personal income rose 0.5 percent in March from an upwardly revised 0.4 percent in February, personal spending surged 0.9 percent in March, following an upwardly revised 0.5 percent a month earlier.

Another report from the U.S. Commerce Department showed U.S. construction spending to have risen less than expected 0.2 percent to an annual rate of $942.5 billion in March, after falling by 0.2 percent to a revised $940.8 billion in February.

Meanwhile, the Institute for Supply Management's report showed a more than expected rise in U.S. manufacturing activity, with the the purchasing managers index climbing to 54.9 in April, from 53.7 in March.

An index monitoring manufacturing activity in China came in with a seasonally adjusted score of 50.4 in April, the China Federation of Logistics and Purchasing said on Thursday. This was just shy of the 50.5 forecast, but up from 50.3 in March.

U.K. factory expansion improved strongly in April, with the seasonally adjusted Markit/Chartered Institute of Purchasing & Supply Purchasing Manager's Index climbing to 57.3 in April from 55.8 in March, which was revised from 55.3.