Gold futures tumbled the most in nine weeks after a report showed U.S. jobless claims last week dropped to the lowest since April 2006, boosting speculation that the Federal Reserve will scale back fiscal stimulus soon.First-time claims for unemployment insurance fell to 292,000 in the week ended Sept. 7, government data showed. Analysts forecast 330,000. A Bloomberg survey on Sept. 6 showed that the Fed will reduce bond purchases by $10 billion this month. Gold rose to a three-month high on Aug. 28 on concern that the U.S. would launch an attack against Syria. Prices fell 0.7 percent last week as fears of a strike diminished.
“The momentum has been about the economy improving, and today’s job data was another reason why people think the tapering may happen,” Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said in a telephone interview. “The war premium is also coming off.”
Gold futures for December delivery fell 2.4 percent to settle at $1,330.60 an ounce at 1:45 p.m. on the Comex in New York, the biggest drop for a most-active contract since July 5. Earlier, the metal touched $1,325.60, the lowest since Aug. 15.
Prices have dropped 21 percent this year as an equity rally and low inflation eroded demand for the metal as a store of value
“The momentum has been about the economy improving, and today’s job data was another reason why people think the tapering may happen,” Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said in a telephone interview. “The war premium is also coming off.”
Gold futures for December delivery fell 2.4 percent to settle at $1,330.60 an ounce at 1:45 p.m. on the Comex in New York, the biggest drop for a most-active contract since July 5. Earlier, the metal touched $1,325.60, the lowest since Aug. 15.
Prices have dropped 21 percent this year as an equity rally and low inflation eroded demand for the metal as a store of value.
Syria Tension
