Gold was in decline on profit taking following a surge that took the yellow metal to multi-week week highs and dumping gold to cover up losses in equities as the main US stock market indexes fell in early trade.
In addition to that, gold was pressured by a sharp decline in silver, which halted gold’s rally and prompted traders to take profits.
Gold received limited support from a weaker US dollar and today’s downbeat US economic data. The Department of Labor reported that initial jobless claims unexpectedly added 10,000 last week to reach 424,000, while the Commerce Department left its GDP growth estimate for the first quarter unchanged at 1.8 percent, while the markets were expecting to see an upward revision.
Gold last traded at US$1,517/oz. Silver and platinum slipped to US$36.99/oz and US$1,770/oz respectively.|
Most mining companies were on the rise today.
Lonmin (LON:LMI) and Fresnillo (LON:FRES) advanced 3 percent and 2.2 percent respectively.
In the FTSE 250, Petropavlovsk (LON:POG) and African Barrick Gold (LON:ABG) rose 2.7 percent and 2.2 percent respectively and Aquarius Platinum added 1 percent.
Horizonte Minerals (LON:HZM) was among the top performers in the sector, rising 7 percent.