Gold prices fall on US jobs news

The price of gold fell Thursday as more investors looked for riskier investments after better news than expected on US jobless claims and as others had to sell gold after midday to cover losses as New York equities markets turned from gains to losses.

December gold was down $3.60 to $1,237.70 per troy ounce in New York trade after the US Labor Department reported that there were 31,000 fewer first-time claims for unemployment benefits filed in the US last week, making some investors more optimistic and therefore more interested in riskier investments.

However, stock market declines after the Kansas City Federal Reserve said that manufacturing activity in its region has slowed down this month caused some investors to sell their gold holdings in order to cover their losses in the equities market, pushing gold prices lower.

Silver prices also lost ground, with the most active December contracts falling 5 cents to $19.02 per troy ounce.

Meanwhile, among base metals, September contracts for copper added 9 cents to $3.30 per pound, its highest level in a week, while three-month contracts added $170 to $7,271 per tonne on the London Metal Exchange, helped by the US jobless claims data.

Other base metals were also higher in London trade.