2023.12.2817:53:00UTC+00Gold Futures Settle Lower As Dollar Rebounds

Gold prices fell on Thursday as the dollar rebounded from recent losses despite continued optimism the Fed will likely cut interest rate by 25 basis points in March 2024.

The yield on benchmark 10-year bonds edged up a bit as well.

The dollar index climbed to 101.25, gaining about 0.25%.

Gold futures for February ended down $9.60 at $2,083.50 an ounce.

Silver futures for March ended lower by $0.269 at $24.372 an ounce, while Copper futures for March settled at $3.9245 per pound, down $0.0350 from the previous close.

In economic releases today, the Labor Department's report showed initial jobless claims climbed to 218,000 in the week ended December 23rd, an increase of 12,000 from the previous week's revised level of 206,000.

Economists had expected jobless claims to inch up to 210,000 from the 205,000 originally reported for the previous week.

The data may have added to optimism about the likelihood of near-term interest rate cuts by the Federal Reserve, with CME Group's FedWatch Tool currently indicating a 72.8 percent chance the Fed will lower rates by a quarter point in March.

The National Association of Realtors also released a report showing pending home sales were unexpectedly unchanged in the month of November.

NAR said its pending home sales index stayed at 71.6 in November after tumbling by a revised 1.2% in October.Economists had expected pending home sales to jump by 1% compared to the 1.5% slump originally reported for the previous month.