PRECIOUS-Gold slips as U.S. data bolsters economic recovery hopes

* Weekly jobless claims fall below 1 million
* Palladium hits highest level since March 31
* Interactive graphic tracking global spread of the
coronavirus:
https://tmsnrt.rs/3aIRuz7 in an external browser

(Adds comment, updates prices)
By Diptendu Lahiri
Sept 3 (Reuters) - Gold prices fell over 1% on Thursday, as
positive U.S. economic data elevated hopes for a quick recovery
and dented allure of the safe-haven metal.
Spot gold XAU= fell 0.6% to $1,930.24 per ounce by 2:18
p.m. ET (1818 GMT), after falling earlier to a one-week low of
$1,921.61.
U.S. gold futures GCv1 settled down 0.4% at $1,937.8.
A drop in U.S. jobless claims reported Thursday and positive
manufacturing data reported earlier in the week are taking some
shine off gold, said David Meger, director of metals trading at
High Ridge Futures.
U.S. weekly jobless claims fell below 1 million last week
for the second time since the pandemic started, but did not
signal a strong recovery in the labor market because the drop
largely reflected a changed in the methodology used to address
seasonal fluctuations in data. But data earlier in the week boosted optimism about a steady
recovery. New orders for U.S.-made goods increased more than
expected in July, while U.S. manufacturing data showed activity
accelerated to a near two-year high in August.
However, Federal Reserve officials have said further support
for the economy is needed. Fed Governor Lael Brainard on Tuesday
said the U.S. central bank will need to roll out new efforts to
help the economy overcome the impact of the pandemic in coming
months. "The Fed governor's take on a move to provide more stimulus
cements the fact that the economy is still in a crisis and the
little fall in safe-haven assets like gold we see are mere
consolidation," Meger said.
Gold has gained 27% this year as the coronavirus pandemic
battered global economies and prompted unprecedented stimulus
measures.
"The fundamentals (still) look pretty strong for bullion
with the virus threats still there, ultra-low interest
environment and room for more stimulus to boost the economy,"
Edward Moya, senior market analyst at broker OANDA, said.
Elsewhere, silver XAG= fell 3% to $26.66 per ounce, while
platinum XPT= fell 1.7%, to $890.52.
Palladium XPD= rose 1.6% to $2,282.90, having hit its
highest since March 31.