Metals Stocks: Gold erases loss after rise in jobless claims

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Gold futures erased an early loss Thursday to turn slightly higher after data showed an unexpected rise in first-time U.S. jobless benefit claims.

Gold for August delivery


rose 90 cents, or les than 0.1%, to $1,804.30 an ounce on Comex , while silver futures

were down 9 cents, or 0.4%, at $25.155 an ounce.

Gold initially weakened, feeling pressure as U.S. Treasury yields continued to rebound from a five-month low and the dollar strengthened after the European Central Bank struck a dovish stance as it adjusted its rate guidance following its earlier adoption of a new inflation target.

The dollar moderated its rise and Treasury yields turned lower, however, after data showed first-time claims for unemployment benefits jumped jumped 51,000 to 419,000 last week.

The yield on the 10-year Treasury note

edged down 1.3 basis points to 1.269% after earlier trading above 1.30%. Rising yields can weigh on gold because it raises the opportunity cost of holdiing nonyielding assets. A stronger dollar can also be a negative for commodities priced in the unit, making them more expensive to users of other currencies.

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