Gold edges up but gains capped by Putin, US job data

New York  (Aug 14)  Gold prices were a touch higher on Thursday in thin trading, but gains were limited by
U.S. jobless claims data which showed continued recovery in the labor market and conciliatory comments from Russian President Vladimir Putin about Ukraine.
The number of Americans filing new claims for unemployment benefits rose more than expected last week. But analysts said the four-week average of claims remained consistent with solid job gains.
Analysts said some recent U.S. economic indicators have fed investor skepticism about whether the U.S. economy is definitely out of the woods. Gold prices have been under pressure due to speculation that a stronger economy could encourage the Federal Reserve to raise interest rates soon.
"These data releases give gold a boost now and again as they
are seen as restraining the more hawkish Fed governors, though
they haven't ever been enough to change medium-term expectations
for the U.S. economy or gold," Turner said.
    Spot gold was up 0.1 percent on the day to $1,313.39
an ounce by 3:07 p.m.
    U.S. COMEX gold futures for December delivery settled
up $1.20 at $1,315.70, with trading volume about 35 percent
below its 30-day average, preliminary Reuters data showed.
    On Wednesday, a disappointing retail sales report for July
eased fears that the Fed might raise rates sooner than expected.
 
    Bullion gains were also limited on signs of easing tensions
after President Vladimir Putin said Russia would stand up for
itself but not at the cost of confrontation with the outside
world.
    So far this year, gold has risen 9 percent, boosted by
political conflict in Ukraine, Iraq and Israel. But in physical
market news, the World Gold Council said global gold demand fell
in the second quarter, as sales of jewelry, coin and bar sales
tumbled from last year's record levels, a factor that outweighed
lower liquidation of gold-backed exchange-traded funds.
 
    Reflecting investor sentiment, holdings in SPDR Gold Trust
, the world's largest gold-backed ETF, fell 0.26 tonnes to
795.60 tonnes on Wednesday.
    Among other precious metals, silver was up 0.2
percent at $19.86 an ounce. Platinum edged up 0.1 percent
to $1,461.93 an ounce, while palladium gained 0.7 percent
to $880.25 an ounce.

Source: Reuters