Gold prices reversed losses to rebound on Thursday

Silver ends with losses though as dollar firms up

Precious metals ended in a mixed mode on Thursday, 25 September 2014 at Comex. Gold prices reversed losses to rebound on Thursday in response to a broad-based selloff in U.S. stocks. The yellow metal was lifted on short covering and bargain hunting after hitting a nine-month low in overnight trading. The U.S. dollar index backed well down from its daily high and the U.S. stock indexes sold off sharply, which further encouraged the gold market bulls to step up and do some buying.

Gold for December delivery rose $2.40 to settle at $1,221.90 an ounce.

December silver declined 26 cents to $17.38 an ounce.

Gold retreated earlier as the U.S. dollar remained firm against its rivals but bounced as all three stock indexes posted large drops.

A feature in the market place this week has been the surging U.S. dollar versus most of the other major world currencies. The U.S. dollar index hit a four-year high on Thursday, while the Euro currency dropped to a 14-month low against the greenback. The dollar has been lifted by recent U.S. economic data that has been mostly upbeat, combined with some downbeat economic data coming out of the European Union, Japan and other major industrialized countries.

Economic data at Wall Street included Initial Claims and Durable Orders on Thursday. The initial claims level increased by 12,000 to 293,000 from an upwardly revised 281,000 (from 280,000), while the consensus expected an increase to 300,000. Once again, the Department of Labor reported that there were no special factors impacting the claims level, which implies labor market conditions are at, or very near, full employment

Durable goods orders fell 18.2% in August after increasing a slightly downwardly revised 22.5% (from 22.6%) in July, while the consensus expected a decline of 16.3% A surge in aircraft orders in July resulted in the largest monthly increase in overall durable goods last month. The normal payback period came immediately and resulted in the largest monthly decline in overall orders in August.

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