Gold retreat continues on stronger US dollar, equities

Gold futures on the COMEX division of the New York Mercantile Exchange fell for a second session on Thursday as the U.S. dollar and equities continued advancement, pushing investors away from gold.

The most active gold contract for February delivery fell 2.2 U. S. dollars, or 0.18 percent, to settle at 1,208.50 dollars per ounce.

Gold came under pressure from a report released on Thursday by the U.S. Department of Labor which showed an improvement in the U. S. jobs market, which, analysts said, indicated that the U.S. economy is gaining momentum and therefore cut investors' safe haven appeal.

The number of Americans who initially applied for jobless benefits in the week ending Jan. 3 slipped 4, 000 to a seasonally adjusted 294,000, according to the report.

The much-anticipated release of the minutes from the U.S. central bank's meeting last month put additional pressure on gold, as the participants made clear that they believed the U.S. economy would continue to strengthen.

Meanwhile, a stronger dollar also hurt gold's appeal as the two typically move in opposite directions. The Dollar Index Spot rose by 0.49 percent to 92.3440 on Thursday.

U.S. stocks spiked midday Thursday, extending the previous session's strong rebound. At noon, the Dow jumped 287.35 points, or 1.63 percent, to 17, 871.87. The S&P 500 jumped 33.10 points, or 1.63 percent, to 2,059. 00. The Nasdaq Composite Index rose 81. 41 points, or 1.75 percent, to 4,731.88.

Silver for March delivery lost 15.9 cents, or 0.96 percent, to close at 16.385 dollars per ounce. Platinum for April delivery gained 2.1 dollars, or 0.17 percent, to close at 1,223.00 dollars per ounce.