Gold price rose on a weaker U.S. dollar. The U.S. dollar declines against other currencies due to the mostly weaker-than-expected U.S. economic data. The U.S. Labor Department released its jobless claims figures on Thursday. The number of initial jobless claims in the week ending September 26 in the U.S. rose by 10,000 to 277,000 from 267,000 in the previous week. Analysts had expected the initial jobless claims to increase to 270,000.
Market participants are awaiting the release of the official U.S. labour market data tomorrow. Analysts expect that U.S. unemployment rate is expected to remain unchanged at 5.1% in September. The U.S. economy is expected to add 202,000 jobs in September, after adding 173,000 jobs in August.
The Institute for Supply Management released its manufacturing purchasing managers' index for the U.S. on Thursday. The index declined to 50.2 in September from 51.1 in August, missing expectations for a fall to 50.6. It was the lowest level since May of 2013.
Gold is traded in U.S. dollars. It suffers when the U.S. dollar strengthens, becoming more expensive for holders of other currencies.
December futures for gold on the COMEX today increased to 1118.50 dollars per ounce.