Gold Drops and Loses $1,900 Key Support Level

Gold prices fell on Thursday to close below the $1,900 level, losing an important support level and finishing at the lowest level in about three weeks.

The rise of the U.S. Dollar (USD) against major peers and the elevated risk sentiment among investors, both on the back of the positive economic data released earlier today, contributed to the decline of the yellow metal, which closed yesterday at its highest level since January 7.

Gold futures for August delivery lost 1.9%, or $36.60, to close at $1,873.30 per ounce.

This is the lowest settlement for gold’s most active contract since May 18.

A drop in initial jobless claims, the biggest surge in private payrolls in about a year, and an improvement in the services and manufacturing sectors represented a bundle of positive economic data reflecting the recovery of the U.S. economy.