Gold futures settle at lowest since early July

Gold futures on the COMEX division of the New York Mercantile Exchange fell on Thursday, pressured mostly by upbeat U.S. economic data and hints that the U.S. Federal Reserve will taper its monthly stimulus program soon.

The most active gold contract for December delivery fell 14.4 U. S. dollars, or 1.14 percent, to settle at 1,243.6 dollars per ounce. Gold prices logged their lowest settlement since July 8, according to FactSet, a financial information provider data.

Market analysts say, the market is convinced that Fed is ready to start tapering, and the jobless data showing the U.S. economy is improving gave investors another reason to believe gold will continue to weaken.

U.S. Labor Department said Thursday that jobless claims fell by 21,000 to 323,000 in the week ended Nov. 16, much better than what analysts expected. Fed policy makers expect U.S. economic data will signal further improvement in the labor market and warrant trimming the pace of purchases in coming months, according to minutes of the Fed's October meeting released Wednesday.

Upbeat economic data tends to weigh on prices for gold, as the precious metal is generally seen as a hedge against inflation and as a safe-haven asset. Silver for December delivery fell 12.4 cents, or 0.62 percent, to close at 19.934 dollars per ounce.