LONDON: Gold eased on Thursday after its biggest one-day drop in five weeks as upbeat US growth and jobs data drove stocks and the dollar higher, though uncertainty over the timing of a US rate rise held losses in check.

Spot gold was down 0.5 per cent at $1,119.35 an ounce at 1345 GMT, and US gold futures for December delivery were down $5.30 an ounce at $1,119.30.

US stocks opened higher and the dollar firmed after data showed the US economy grew faster than initially thought in the second quarter and jobless claims fell more than expected last week. European stocks extended gains to 3.4pc.

Gold tends to benefit from ultra-low rates, which cut the opportunity cost of holding non-yielding bullion while boosting the dollar.

Other precious metals rebounded from this week’s slide. Platinum was up 1.6pc to $990.74 and silver was up 0.4pc at $14.18.

Palladium was up 2.4pc at $545 an ounce after falling to a near five-year low of $528 on Wednesday. It is still down nearly 10pc this week.

Published in Dawn, August 28th, 2015

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