Gold futures gave up earlier gains to turn lower on Thursday, as some upbeat U.S. economic data dulled haven demand for the precious metal.
Prices also declined on the back of further gains in U.S. benchmark stock indexes, which followed the completion Wednesday of the first stage in a trade pact between the U.S. and China.
“Gold prices gave up their earlier gains following a wrath of positive US economic data,” said Edward Moya, senior market analyst at Oanda, in a market update. “This week has not been good for macro-economic traders looking to make a bullish case for gold prices.”
The Philadelphia Fed said Thursday its gauge of business activity in its region surged in January. New jobless claims fell for the fifth week in a row and retail sales increased 0.3% last month, the government said Thursday. Meanwhile, the National Association of Home Builders’ monthly confidence index dropped one point to 75 in January from 76 the month prior.
Despite the mostly upbeat economic data, “the longer-term bullish trend for gold has been supported on central bank demand, geopolitical risks,…