The Bloomberg Dollar Index, which measures the value of the world's reserve currency against 10 competing monetary units, lost as much as 0.5 percent of its value and was pushing toward its largest losses since this past April. The precious metal and the world's reserve currency tend to perform the inverse of one another.
The yellowish metal also achieved gains as a result of strengthening commerce data released by China, the second-largest consumer of bullion. The Asian nation, which saw imports and exports increase in June, trails only India for amount of gold purchased.
"The continued weakness in dollar is making gold look attractive," trader Frank Lesh with FuturePath Trading in Chicago told the news source on Thursday. "Also, there is some buying in anticipation of a rise in retail Chinese demand as the economy improves."
At 12:39 p.m. on Thursday, gold futures rose 1.93 percent, a $24.82 lift to $1,312.43 per troy ounce.
A down year?
Despite the gains during the Thursday trade session, gold futures have had better years. Through Wednesday, bullion has lost roughly 23 percent of its value, largely dragged down by speculation about the U.S. Federal Reserve tapering and ultimately closing is economy-spurring monetary stimulus measures. Early next month will mark two years since gold futures notched its all-time high price of $1,923.70 per troy ounce.
"Continued weakness in the dollar is negating the effect of the good jobs data," the trader told the news source on Thursday.
The precious metal's annual-gains streak also is in peril this year after having advanced in value during the past 12 years.
Two percent upward drive
Gains for the precious metal pushed as high as 2 percent on Thursday, according to Reuters. The yellowish metal exceeded the psychological value of $1,300 per troy ounce.
The upward drive was correlated with the Chinese import and export data pushing past expectations, which spurred optimism about the strength of the globe's second-largest economy. The Asian nation has endured roughly two years of slower growth yet the data released Thursday does its part to brighten the outlook about more stability laying ahead.
"It looks like things in China are moving into the right direction, so that means deflationary forces are brushed aside and inflationary forces are more popular now," portfolio manager Axel Merk with Merk Funds told Reuters on Thursday.
Reuters reports the world's reserve currency dove to its lowest value on that news service's gauge of the strength of the monetary unit.
But doubts are emerging about when the U.S. Federal Reserve will begin tapering its economy spurring stimulus measures.
Chinese data benefits metals
MarketWatch reports the yellowish metal and copper futures were on the rise in tandem on Thursday, both of which were spurred higher by the economic data released by the Asian nation.
"China is the 800-pound gorilla in the room from a commodities standpoint," president Jason Rotman with Lido Isle Advisors told the news source on Thursday.
Additional economists did not disagree regarding the important role that the Asian nation is playing in gold's performance on commodity markets.
China "remains the key driver of gold demand, and is also to some extent offsetting the weak investment demand," Commerzbank strategists stated in a client note cited by MarketWatch.
Jobless claims in the U.S. for week ended pushed higher by 5,000 to amount to 333,000, which was not as high as some economists had anticipated.
The June trade deficit being less than expected is forecast to prompt adjustments to the gross domestic data information for the April-to-June period of this year.
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