Gold price rises, but gains are limited by a stronger U.S. dollar

Gold price increased, but gains were limited by a stronger U.S. dollar. The greenback rose against other currencies on the better-than-expected U.S. economic data and on comments by the European Central Bank (ECB) President Mario Draghi. He said at a press conference that the value of the ECB's asset-buying programme will be discussed at the monetary policy meeting in December. He noted that the Governing Council discussed the possibility to cut interest rates, but the decision was not made. Draghi pointed out that the central bank will expand its asset-buying programme if needed to boost inflation toward the 2% target.

The U.S. Labor Department released its jobless claims figures on Thursday. The number of initial jobless claims in the week ending October 17 in the U.S. rose by 3,000 to 259,000 from 256,000 in the previous week. The previous week's figure was revised up from 255,000. Analysts had expected the initial jobless claims to increase to 265,000.

The National Association of Realtors released existing homes sales figures in the U.S. on Monday. Sales of existing homes rose 4.7% to a seasonally adjusted annual rate of 5.55 million in September from 5.30 million in August. August's figure was revised down from 5.31 million units. Analysts had expected an increase to 5.38 million units.

December futures for gold on the COMEX today rose to 1167.80 dollars per ounce.