Gold shows a moderate decrease

Gold prices declined moderately, returning to the minimum of yesterday's session, as the strengthening of the US dollar prompted some buyers to lock in profits.

Earlier significant support for the precious metal had weak data on the US labor market, but their effect was short-lived, and the price returned to the reduction. Recall, the Labor Department reported that the number of Americans who first applied for unemployment benefits unexpectedly rose last week, reaching its highest level in over a year, which may cause concern about the health of the labor market as a result of a slowdown in the number of job growth seats in April. Primary applications for state unemployment benefits increased by 20,000 and reached a seasonally adjusted 294,000 for the week ended May 7, the highest level since the end of February 2015. Data over the past week have not been revised. Economists had forecast that the primary treatment will be reduced to 270 000 last week. Despite the leap last week, circulation remained below 300,000, a threshold associated with the health conditions of the labor market, for 62 consecutive weeks, the longest period since 1973. Labor Department analyst said there were no special factors influencing the data last week.

"The weakness of the gold that we see today is mainly associated with the strengthening of the dollar, and the approach of quotes to a very important level of $ 1,300," - said Naeem Aslam, Think Forex analyst. The dollar index was up 0.15 percent, supported by the depreciation of the yen, as investors sold the currency amid speculation that the Bank of Japan may decide to increase the monetary stimulus as early as next month.

Gold rose in price by almost 20 percent this year, as weak data on the US and global economic slowdown have dispelled expectations that the Fed will continue to raise interest rates in the near future. Recall, higher interest rates have a downward pressure on the price of gold, which brings its holders to interest income and that is difficult to compete with the assets, bringing that income against the background of increasing interest rates.

Underlining the optimism with respect to the metal, the gold reserves in the largest gold ETF-fund SPDR Gold Trust rose on Wednesday by 2.7 tonnes to 841.9 tonnes (the highest value since December 2013).

The focus has also been a report of the World Gold Council (WGC), which showed that in January-March, demand for gold in the world increased by 21% and reached a record level for the first quarter on record - 1289.8 tonnes. "A significant proportion of demand provide investors who have decided to recover their investments in gold after the mass liquidation of positions at the beginning of 2013", - said the WGC. World central banks in January-March reduced the purchase of gold reserves by 3%, jewelery demand fell by 19%. Despite this, for the quarter on the market of physical gold for the first time in several years, a deficit: the offer was lower demand by nearly 155 tons.

The cost of the June gold futures on the COMEX fell to $ 1269.2 per ounce.