Gold records sharpest daily drop after robust U.S. jobless claims figures
First-time applicants for jobless benefits declined last week to 262,000, the lowest since April 15, 2000, from 295,000 a week earlier. Analysts had penciled in a drop to 290,000.
The strong labour-market data raised speculations the Fed may raise interest rates in September, damping speculations that rate hike will not take place until 2016.
Gold has plunged, so far, more than 2 percent, after the rise in U.S. Treasury yields, given the fact assets with yields weigh on gold and other commodities that provide no interest to their holders.
The yellow metal plummeted on Wednesday after the Fed statement illustrated that U.S. growth will rebound to a “moderate pace,” and the ease in first-quarter expansion is transitory.
Despite the drop in the U.S. dollar against a basket of major currencies to a low of 95.17, according to the dollar index, gold prices failed to rise.
In the same context, gold prices did not take a boost from the advance in oil prices.
Crude oil futures for June delivery rose for a third straight session to trade around $59 a barrel.
Meanwhile, gold is set for a third straight monthly drop, after shaving all the gains recorded in April.
As of 17:47 GMT, gold traded around $1180.50 an ounce, after hitting a bottom of $1176.97.