Gold traded higher after the release of the U.S. initial jobless claims. The number of initial jobless claims in the week ending August 01 in the U.S. rose by 3,000 to 270,000 from 267,000 in the previous week.
Analysts had expected the number of initial jobless claims to be 273,000.
Jobless claims remained below 300,000 the 22th straight week. This threshold is associated with the strengthening of the labour market.
Gold price is under pressure due to speculation that the Fed may start raising its interest rate soon.
Market participants are awaiting the release of the U.S. labour market data. Analysts expect that U.S. unemployment rate is expected to remain unchanged at 5.3% in July. The U.S. economy is expected to add 218,000 jobs in July, after adding 223,000 jobs in June.
October futures for gold on the COMEX today declined to 1090.00 dollars per ounce.