On Thursday, gold (NYSEARCA:GLD) futures for December — the most active contract — dropped $17 to close at $1,373 per ounce, while silver (NYSEARCA:SLV) futures declined 16 cents to finish at $23.26.
Both precious metals experienced selling pressure as the most recent reading on jobless claims was better than expected, which helps keep the Federal Reserve on pace to begin dialing down its bond purchases this month.
Americans filing applications for unemployment benefits fell by 9,000 to 323,000 in the final week of August. On average, economists expected jobless claims to total 330,000. The four-week moving average, which is less volatile, also declined by 3,000 to 328,500 claims. However, the number of jobless claims in the previous week was revised slightly higher to 332,000.
“We are seeing significant improvement in claims,” explains BNP economist Yelena Shulyatyeva to Bloomberg. However, she adds, “What we need to see is more progress on the hiring side.”
By the end of the trading day, shares of the SPDR Gold Trust (NYSEARCA:GLD) dropped 1.8 percent while the iShares Silver Trust (NYSEARCA:SLV) declined 1.4 percent. Gold miners (NYSEARCA:GDX) Barrick Gold (NYSE:ABX) and Yamana Gold (NYSE:AUY) fell 2.6 percent and 4.3 percent, respectively. Shares of First Majestic Silver (NYSE:AG) plunged 4.6 percent.
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Disclosure: Long EXK, AG, HL, PHYS
Read the original article from Wall St. Cheat Sheet