Gold extends slide to close at 1.5% loss

Gold futures on the COMEX division of the New York Mercantile Exchange futures fell on Thursday, extending a slump to a 34-month low, as U.S. economic data topped estimates by analysts, eroding the metal's appeal as a store of value. The most active gold contract for August delivery fell 18.2 dollars, or 1.48 percent, to settle at 1,211.6 dollars per ounce. The pressure didn't let up in the electronic trade, with the contract dipping as low as 1,196.1 U.S. dollars. The U.S. Federal Reserve said on June 19 that asset purchases may be scaled back if the economy continues to improve. In May, consumer spending rebounded and pending home sales jumped to the highest since 2006, while jobless claims fell last week, reports showed Thursday. Market analysts believe all this weighs heavily on the trading. Monetary stimulus from the Federal Reserve and other central banks have been cited as supporting gold's rally in recent years. Assets in the SPDR Gold Trust, the world's biggest exchange-traded product backed by the metal, have slumped 28 percent this year to the lowest since February 2009 amid an equity rally and muted inflation. The U.S. Commerce Department reported consumer spending rose 0. 3 percent in May and wages rose 0.5 percent. Separately, the Labor Department said first-time claims for unemployment benefits declined by 9,000 to 346,000 in the latest week. Silver for July delivery fell 6 cents, or 0.32 percent, to close at 18.553 dollars per ounce.