Gold drops for fourth consecutive day on positive economic data

Gold futures on the COMEX division of the New York Mercantile Exchange on Thursday fell on positive U. S. economic data. The most active gold contract for June lost 12.5 U.S. dollars, or 0.96 percent, to settle at 1,283.4 dollars per ounce. This is the fourth day that the price of gold has declined, as positive economic data has dampened investment demand. Among the positive data that caused gold to fall, the U.S. Commerce Department reported Thursday that consumer spending increased 0.9 percent, the largest rise since late 2009. The same report also said that U.S. personal income rose 0.5 percent. Gold's decline was helped along by a report indicating manufacturing in the U.S. increased, an index from the Institute for Supply Management indicated that it rose to 54.9 percent last month, the highest level since December. The U.S. Federal Reserve cut its bond-buying strategy by 10 billion dollars to 45 billion dollars starting in May. Gold also fell as the U.S. Commerce Department said that outlays for U.S. construction projects rose 0.2 percent in March to a seasonally adjusted annual rate of 942.5 billion dollars on private residential projects. The report said that spending rose 0. 8 percent for residential construction, and 0.2 percent for nonresidential projects. In the realm of public projects, spending fell 6.6 percent for residential construction and 0.5 percent for nonresidential construction. Despite mostly upbeat positive news, gold's downturn was slightly softened by a U.S. Labor Department report released Thursday said that jobless claims rose 14,000 to a nine-week high of 344,000. Analysts did not expect jobless claims to increase. Analysts are cautiously waiting a much-anticipated jobs report to be released Friday. On the technical front, analysts also say they still see a good demand for gold from the Chinese market. Silver for July delivery lost 13.1 cents, or 0.68 percent, to close at 19.043 dollars per ounce. Platinum for July delivery lost 0.4 dollar, or 0.03 percent, to close at 1,427.5 dollars per ounce.