Gold Moves Sharply Lower Amid Trade Deal Optimism

(RTTNews) - Gold futures moved sharply lower during trading on Thursday, adding to the weakness seen in the two previous sessions.

After ending Wednesday's modestly lower but well its worst levels, gold for May delivery plunged $95 or 2.9 percent to $3,210 an ounce

With the steep drop on the day, the price of gold pulled back further off its recent record highs, hitting its lowest levels in over two weeks.

Optimism about possible trade deals reduced the safe haven appeal of gold, with President Donald Trump telling a NewsNation town hall on Wednesday that he has "potential" trade deals with India, South Korea and Japan.

The slump by the price of the precious metal also came amid a holiday in China, with a note from TD Securities suggesting "gold is being sucked into China's holiday-induced liquidity vacuum."

An increase in the value of the U.S. dollar also weighed on gold futures, as the U.S. dollar index climbed by 0.8 percent.

Meanwhile, traders largely shrugged off some disappointing U.S. economic data, including a Labor Department report showing first-time claims for U.S. unemployment benefits rose by much more than expected in the week ended April 26th.