Gold prices traded higher on Thursday
Gold prices traded higher on Thursday, buoyed by a weaker dollar, despite the release of bullish economic data.
The metal for June delivery on the Comex division of the New York Mercantile Exchange gained $5.29 or 0.44%, to $1,224.20 a troy ounce by 13:36 EDT.
G futures traded above eight-week lows amid political turmoil in Washington, after President Trump unexpectedly fired FBI chief James Comey but gains were capped by better than expected producer inflation and labor market data.
The U.S. Labor Department said its producer price index, which measures inflation before it reaches the consumer, rose 0.5% in April, above expectations for a 0.2% increase.
Meanwhile, the number of Americans who filed for unemployment insurance for the week ended May 6, dropped to 236,000, a more than 28-year low, the Labor Department said.
Gold this thursday
The bullish initial jobless claims report fuelled expectations that the Federal Reserve would hike its benchmark rate June amid a tightening labor market.
According to investing.com’s fed rate monitor tool, nearly 80% of traders expect the Federal Reserve to hike interest rates in June, compared to 63% in the previous week.
Gold is sensitive to moves higher in bond yields, which lift the opportunity cost of holding non-yielding assets such as bullion.
In other precious metals trading, silver futures rose 0.53% to $16.289 a troy ounce while platinum added 0.90% to trade at $918.05, after British platinum producer Lonmin said Thursday, protesters were disrupting output and intimidating employees around its Marikana operations in South Africa.
Copper gained 0.62% to $2.510 while natural gas traded at $3.382, up 2.73%, after data showed that natural gas supplies in storage in the U.S. rose less than expected.