22nd August 2014
There was further deterioration in the gold price yesterday as US jobless claims data pointed towards a strengthening economy.
The Department of Labour reported that the number of people filing for unemployment benefits fell by 14,000 to 298,000 last week, compared to estimates of a 12,000 drop. It may not seem a significant drop, but investors were keen to make the most of the news.
The reasoning behind that is twofold: volumes are still relatively thin due to holidays, so moves are magnified, while the timing of the results could cause a few raised eyebrows at the on-going Jackson Hole symposium.
A stronger dollar also helped push down the price in gold trading, but the situations in Ukraine and the Middle East could ignite at any time, which would lead a safe haven charge back to the precious metal. At 0700 GMT, the gold price sat at $1,280 an ounce.
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