Gold Futures Extend Gains, Set Another New Closing High

Gold prices moved higher on Thursday, extending gains to a fifth straight day thanks to safe-haven demand amid a weak dollar and sluggish equity markets due to persisting worries about economic growth.

Despite a drop in unemployment claims, worries about the economy lingered due to an increase in new coronavirus cases in several states across America.

The dollar index, which was down at 92.52 in early Asian deals, later rose to 93.09 after swinging between gains and losses. It was last seen at 92.82, down marginally from the previous close.

Gold futures for December ended up $20.10 or about 1% at $2,069.40, a fresh closing higher.

Silver futures for September ended up $1.510 at $28.40 an ounce, while Copper futures for September settled at $2.9105 per pound, down $0.0065 from previous close.

Data released by the Labor Department this morning showed initial jobless claims in the U.S. tumbled to 1.186 million in the week ended August 1st, a decrease of 249,000 from the previous week’s revised level of 1.435 million.

Economists had expected jobless claims to edge down to 1.415 million from the 1.434 million originally reported for the previous week.

On the stimulus front, White House negotiators said they’re no closer to agreeing with Democrats on the size and the scope of the latest stimulus package.

“If there’s not a deal by Friday, there won’t be a deal,” Republican Senator Roy Blunt reportedly said.

The impasse over the next round of the U.S. fiscal stimulus measures is causing concerns about the pace of the economic recovery.

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