Bullion also benefited from the first day of congressional testimony delivered by Janet Yellen, the White House nominee to fill the vacancy of Chairman Ben Bernanke with the U.S. Federal Reserve once his term expires in the end of January 2014. For week ended November 9, jobless insurance benefits fell 2,000 to total 339,000, which fell short of the 330,000 forecast by Bloomberg-polled economists.
Yellen, presently the body's vice chair, delivered opening remarks stating the Fed would continue its economy-spurring monetary easing program, which includes the acquisition of debt. Filling the market with the dollars distils the value of the greenback, which prompts the yellowish metal to increase on commodity markets because the two perform the inverse of one-another.
"The initial claims are worse than expected, giving gold a boost," senior commodity broker Phil Streible with R.J. O'Brien & Associates in Chicago told the news source on Thursday. "The dovish statements from Yellen are also very supportive."
At 10:53 a.m. on Thursday, gold futures edged up 0.74 percent, a $9.52 advance to $1,291.27 per troy ounce.
Prior to Thursday's gains, the precious metal had endured five consecutive trading sessions of losses. As the calendar year drives toward its close, gold futures are in peril of snapping their annual gains streak at 12.
China leaps ahead of India
Reuters reports China has pushed ahead of India as the globe's top consumer of bullion. Based on projections by the World Gold Council, the Asian nation is poised to push ahead of the subcontinent by a wide gap.
Funded by the industry, the World Gold Council slashed the outlook for Indian demand this year by 900 tons after it registered at 1,000 tons earlier this year. By contrast, projections for Chinese demand remains at 1,000 tons.
Slimming demand from India is likely to impact the price of gold even further this year, which has seen it drop roughly 24 percent. Concerns about when the Fed will slash the asset purchasing program also contributed to the yellowish metal's volatility.
"The administrative measures that the Indian government has imposed on the market have proven to be quite effective and imports have slowed down," managing director for the Far East Albert Cheng with the World Gold Council told the news source. "It would be difficult to get to 1,000 tons. If not for administrative measures, India would have seen growth like China."
The vice chair addresses U.S. Senate
The Washington Post reports Yellen said on Thursday morning before the U.S. Senate Banking Committee that the U.S. economy is markedly stronger than it was in 2007 when the Great Recession began.
She cited the housing market and stronger sales of cars as two gauges that indicated progress. But the country's jobless rate remains high, which represents "a labor market and economy performing far short of their potential."
While the economy is slowly growing, it will continue to need spurring, the vice chair told the panel, according to The Washington Post. But, ultimately, the economy will have its own legs to stand on.
"I believe that supporting the recovery today is the surest path to returning to a more normal approach to monetary policy," the Fed official told the congressional panel on Thursday.
Yellen also noted that the central bank has done its part to help regulate banks. She said she plans to continue the work that Bernanke has undertaken, with an emphasis on keeping the public informed of the steps.
She was expected to run into probing, incisive questions leveled by Republican members of the panel.
A-Z Guide to E-mini Futures Trading
Download our FREE guide designed to help you understand E-Mini futures contracts! Learn the basics of how E-Mini stock index futures work.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.