Dull day for precious metals

Gold ends at lowest levels in more than a week

Bullion prices ended lower at Comex on Thursday, 01 May 2014. Gold prices fell 1% on Thursday to settle at their lowest level in more than a week, as a rise in consumer spending and income helped dull investment demand for the metal a day ahead of a much-anticipated U.S. jobs report. The Russia-Ukraine crisis is still on the radar screen of the world market place. However, there has been little fresh news coming from that region this week.

Gold for June delivery fell $12.50, or 1%, to settle at $1,283.40 an ounce on the Comex division.

July silver shed 13 cents, or 0.7%, to $19.04 an ounce.

After digesting Wednesday afternoon's FOMC statement from the U.S. Federal Reserve, the take away from that report is that the U.S. economy is picking up momentum after a rough winter. Thursday's U.S. economic data fell in line with the FOMC statement.

In overnight news, the much-anticipated China official manufacturing purchasing managers' index came in at 50.4 in April from 50.3 in March, it was reported Thursday. That reading was right in line with market expectations and had little impact on the market place.

Among economic data expected at Wall Street on Thursday, the initial claims level increased to 344,000 for the week ending April 26 from an upwardly revised 330,000 (from 329,000) for the week ending April 19. That was the highest initial claims reading since February, while the consensus expected the claims level to fall to 315,000.

Personal income increased 0.5% in March after increasing an upwardly revised 0.4% (from 0.3%) in February. The consensus expected income to increase 0.4%. Personal spending also topped expectations, increasing 0.9% in March after increasing an upwardly revised 0.5% (from 0.3%) in February.

The ISM Manufacturing Index increased to 54.9 in April from 53.7 in March. The consensus expected the ISM Manufacturing Index to increase to 54.5. The gain in the ISM Index was in-line with the improvements reported in the regional Federal Reserve manufacturing surveys released throughout April. Also, construction spending increased 0.2% in March after falling a downwardly revised 0.2% (from +0.1%) in February. The consensus expected construction spending to increase 0.4%. The extreme winter weather in January and February did not lead to a release in pent up demand, suggesting the weather effects may have been overstated.

The market place is awaiting what is arguably the most important economic report of the month on Friday: the April U.S. employment situation report from the Labor Department. The key non-farm payrolls number is forecast to come in at up around 215,000.

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