Gold prices moved higher on Thursday, lifting the most active futures contract to a two-week closing high, due largely to safe-haven interest amid continued uncertainty about the pace of the economic recovery.
The dollar’s weakness amid renewed optimism about a new coronavirus relief package supported gold’s uptick.
The dollar index, which dropped to a low of 93.53 earlier in the day, recovered to 93.74 but was still some way down from the flat line, losing about 0.14%.
Gold futures for December ended up $20.80 or about 1.1% at $1,916.30, the highest closing mark since September 18.
Silver futures for December ended higher by $0.760 or about 3.2% at $24.254 an ounce, while Copper futures settled at $2.8655 per pound, losing $0.1670 or about 5.5%
Data released by the Labor Department said first-time claims for U.S. unemployment benefits declined by more than expected in the week ended September 26th, falling by 36,000 from a revised level of 873,000 a week earlier to 837,000. Economists had expected jobless claims to dip to 850,000 from the 870,000 originally reported for the previous week.
A report from the Commerce Department said personal income in the U.S. tumbled by 2.7% in August after rising by an upwardly revised 0.5% in July. Economists had expected personal income to slump by 2.5% compared to the 0.4% increase originally reported for the previous month.
Meanwhile, the report said personal spending climbed by 1% in August after jumping by a downwardly revised 1.5% in July. Personal spending was expected to increase by 0.8% compared to the 1.9% spike originally reported for the previous month.
Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi said they will continue talks on a broad coronavirus relief bill, raising hopes that U.S. lawmakers could finally agree on the long-stalled relief package for the world’s top economy.
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