LONDON: Gold fell two per cent on Thursday after better-than-forecast US jobs data boosted the dollar, reviving expectations the Federal Reserve could raise interest rates soon.

Data on Thursday showed claims for state unemployment benefits declined 34,000 to a seasonally adjusted 262,000 for the week ended April 25, the lowest reading since April 2000.

Separately, US consumer spending rose 0.4pc last month after rising 0.2pc in February, while the Chicago Purchasing Management Index jumped more than expected in April.

Spot gold was heading for its biggest daily fall since March 6, dropping as much as 2pc to a session low of $1,179.77 an ounce earlier. It was down 1.9pc at $1,181.32 an ounce by 1404 GMT.

Published in Dawn, May 1st, 2015

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