MTECHTIPS:-Gold remains in holding pattern, as disappointing global data weighs

MTECHTIPS:-Gold remains in holding pattern, as disappointing global data weighs

Gold futures fell mildly on Thursday amid downbeat economic data in the U.S. , Europe and China, as metal traders digested Wednesday’s release of the Federal Reserve’s April meeting, which provided further indications of a delayed interest rate hike. On the Comex division of the New York Mercantile Exchange, gold for June delivery fell 4.90 or 0.41% to 1,203.80 an ounce. Gold futures traded in a tight range on Thursday, peaking at a session-high of 1,212.30 in overnight trading before dipping to a daily-low of $1,201.2 Over the last fluctuations in gold trade have been minor. With the exception of Tuesday’s sell-off when gold futures plunged 1.7%, the precious metal has closed in an up or down direction by less than 0.45% on every session since May 15. During that span, there has not been a two-day winning streak or a multi-day slump. Previously, gold closed higher on five of six sessions to reach a three-month high at 1,232 an ounce on May 18. Gold likely gained support at 1,190.40 the low from May 13 and was met with resistance at 1,225.50 the high from May 19. In the U.S., new jobless claims inched up last week by 10,000 to 274,000, after the figure remained in the 260,000 range over the previous three weeks. Still, the four-week average fell by 5,500 too 266,250, moving lower for the fourth straight week. By comparison, the four-week average peaked above 285,000 in mid-April. Continuing claims, meanwhile, declined by 12,000 to 2.21 million for the week ending May 9, nearing a 15-year low. When the Federal Open Market Committee released the minutes from its April meeting on Wednesday, the majority of its members did not support a June interest rate, according to the minutes. The Fed reiterated that it will take a “data-driven” approach to its when it is reasonably confident it has seen significant improvements in the economy. The Fed blamed weak first quarter GDP growth on “largely transitory factors” such as severe winter weather and a West Coast port slowdown that dented exports. Historically, economic growth has been comparatively weak in the first quarter in recent years, the FOMC added.

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