Gold's weekly gain was erased on Friday as the U.S. dollar posted gains for a second straight day.
Bloomberg reported that gold futures for December delivery declined 0.1 percent to $1,223.50 an ounce by 7:33 a.m. on the Comex in New York. Gold for immediate delivery in London lost 0.1 percent to $1,223.25 an ounce. The precious metal had reached its two week high yesterday, but saw its already small rally evaporate today.
Gold's decline came on the back of a strengthening U.S. job market, a rising dollar and the belief that the Federal Reserve will raise interest rates and end it's stimulus policies. The Binary Tribune reported that the US Labor Department found the number of Americans who filed for initial unemployment benefits last week fell to 287,000 from a revised amount of 288,000 a week earlier. This beat economists' projections that the number of unemployment claims would rise to 294,000. The four-week average of initial jobless claims fell to 287,750, the lowest claims rate in the last eight years.
"The dollar staged a small comeback, which in turn led to profit taking in the metals. The markets do not want to get ahead of themselves and need to consolidate now rather than attempt lift off," said David Govett, head of precious metals at Marex Spectron Group in London in a note to Bloomberg today.
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