The prices of Gold remain unchanged during North American trading, even as weekly jobless claims figures from the United States did not give any indication regarding a rate hike from the Fed in the upcoming months.
According to the figures released by the Labor Department, the figures for individuals who filed for jobless benefits dropped by one thousand to reach 266,000 in the previous week. Financial analysts were expecting jobless related claims to decrease by four thousand in comparison to the initial figures to touch 265,000 in the previous week. The market is now turning its attention towards the United States retail sales report to be released on Friday.
The report will also help Fed in determining whether U.S. is capable of withstanding an interest rate hike by 2016 end or not. It must be noted that Gold dropped by around forty five cents or 0.03 percent to trade around 1,351.50 dollars. According to CME Group, there is only 40 percent chance that the U.S. will hike the rate of interest by the month of December. Given that the Gold’s performance is highly dependent on the rate hike in the U.S., it is important that the Fed increases the rate gradually instead of increasing it all at once.