Gold moves higher after U.S. jobless claims, Bernanke in focus

Gold futures edged higher in rangebound trade on Thursday, after data showed that the number of people who filed for unemployment assistance in the U.S. fell to the lowest level in two months last week.

Prices fell by the most in almost two weeks on Wednesday in wake of comments made by Federal Reserve Chairman Ben Bernanke.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,284.25 a troy ounce during U.S. morning hours, up 0.5% on the day.

Comex gold prices held in a tight range between USD1,273.35, the daily low and a session high of USD1,286.15 a troy ounce.

Gold futures were likely to find support at USD1,242.35 a troy ounce, the low from July 10 and near-term resistance at USD1,301.75, the high from June 21.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits fell by 24,000 to a seasonally adjusted 334,000 last week, compared to expectations for a drop of 13,000 to 345,000.

Jobless claims for the preceding week were revised down to a gain of 358,000, from a previously reported 360,000.

Market players were now awaiting day two of Fed Chair Bernanke’s testimony before the Senate Banking Committee later in the session.

Comex gold prices fell more than 1% on Wednesday to hit USD1,269.45 a troy ounce, the weakest level since July 12, as some investors were disappointed with Bernanke’s comments.

In day one of his semi-annual testimony before the Financial Services Committee in Congress, Bernanke said the central bank expects to start tapering bond purchases by the end of the year, but added that there was no “preset course.”

Bernanke said the bank’s bond purchase program could be tapered at a faster pace, slower pace or even temporarily increased depending on economic and financial developments.

The Fed Chairman said the economic recovery was continuing at a moderate pace but reiterated that monetary policy will remain accommodative for the foreseeable future.

The precious metal is on track to post a loss of 23% on the year amid speculation the Fed will start to unwind its stimulus program by the year's end.

Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.

Elsewhere on the Comex, silver for September delivery was little changed to trade at USD19.41 a troy ounce, while copper for September delivery shed 0.3% to trade at USD3.120 a pound.