Gold price extends slump on upbeat U.S. data

Gold futures on the COMEX Division of the New York Mercantile Exchange extended the losing streak into a fourth consecutive session on Thursday, as a stream of positive U.S. economic data helped renew positive investor sentiment, diminishing the appeal of gold as a safe-haven asset. The most active gold contract for December delivery dropped 34. 1 dollars, or 2.1 percent, to 1,612.9 dollars per ounce. The Federal Reserve Bank of Philadelphia reported Thursday that manufacturing grew in the Philadelphia region in October after contracting for two straight months, indicating factories are recovering after a sluggish summer. The Conference Board reported Thursday that its index of leading economic indicators added 0.2 percent in September. It was the fifth consecutive gain, matching economists'previous forecast. Market analysts mentioned that the slightly better-than- expected U.S. economic data helped to dampen the gold market sentiment, as flight-to-quality buying slackened. Meanwhile, the talk that German leaders may postpone a summit of European Union leader scheduled for this weekend also helped keep pressure on the bullion. Mike Daly, a gold specialist with PFGbest here in Chicago said that "the continued fragility and indecision in the European Union remains the fuel in pushing the precious metals lower. The constant contradictions that are flowing from the Euro region have certainly added to the lack of investor and trader confidence in regard to the regions financial Ministers and politicians." Silver for December delivery lost 99.6 cent, or 3.2 percent, to 30.281 dollars per ounce. Platinum for January delivery trimmed 32. 7 dollars, or 2.1 percent, to 1,490.4 dollars per ounce.