Gold slides ahead of US jobless claims data

Gold prices tumbled today, May 9, as investors awaited the weekly data on US unemployment claims for more clues about labor market activity, seeking to sharpen their forecasts about monetary policy prospects.

Bullion for June delivery fell 0.28% to $2,315.70 per ounce at 10:48 am Makkah time, while spot prices held ground at $2,309.77 an ounce.

Likewise, silver futures for July delivery rose 0.70% to $27.80 per ounce, with platinum spot prices also up 0.40% to $980.24 an ounce.

Analysts expect US jobless claims to rise to 210,000 applications for the week ended May 4, after remaining unchanged at 208,000 in the previous week.

This is before the release of the preliminary reading of the University of Michigan Consumer Sentiment Index reading tomorrow, May 10. Expectations suggest a drop to 77 points in May, from 77.2 points in April.

"Market is likely to wait for a catalyst for additional upside, whereas the downside does appear to be capped by the limited participation from money managers," Reuters reported Daniel Ghali, commodity strategist at TD Securities, as saying.