Gold drops on upbeat economic data

Gold futures on the COMEX division of the New York Mercantile Exchange Thursday fell for a third session in a row as weekly U.S. jobless claims dropped, boosting U. S. equities. The most active gold contract for June fell 1.2 U.S. dollars, or 0.09 percent, to settle at 1287.7 per ounce. U.S. Labor Department said Thursday the initial jobless claims dropped by 26,000 to a seasonally adjusted 319,000 in the week ended May 3, the lowest level in a month. Drop in weekly U.S. jobless claims has triggered the rise of U.S. equities and hindered gold's appeal as a safe-haven reserve. Nevertheless, European Central Bank signaled the possibility of a decision on more economic easing at the central bank's next policy meeting, which curbed the fall of gold somehow. Thanks to Federal Reserve Chair Janet Yellen's upbeat comments on the economy, gold has lost nearly 22 dollars in the past three sessions. Some market analysts believe that U.S. economy is on solid ground and that the job market is on an upswing. But gold still has its chance. Market analysts believe that geopolitical tensions in Ukraine could be a life line for gold bulls to take the advantage. Silver for July delivery lost 20.4 cents, or 1.05 percent, to close at 19.138 dollars per ounce, while platinum for July delivery rose 3.3 dollars, or 0.23 percent, to close at 1438.1 dollars per ounce.