Gold prices sink following better economic news

Chicago (July 24)  Gold is slipping to its lowest level in a month as signs of an improving economy lure traders into other investments.

The gold contract for August delivery sank  $13.90  , or 1.1 percent, to settle at  $1,290.80  an ounce Thursday. That's the lowest settlement price since  June 18  .

 The Labor Department  said Thursday that the number of people applying for unemployment benefits last week dropped to the lowest level since  February 2006  , almost two years before the Great Recession started. In a separate report out Thursday, a gauge of manufacturing in  China  reached an 18-month high.

Better economic reports tend to drag down gold prices.

In other trading, news of stronger Chinese manufacturing gave copper prices a boost. Copper for September climbed  6 cents  , or 2 percent, to  $3.27  a pound.

Source:  Associated Press