Gold today extended the biggest slump in eight weeks after a drop in US jobless claims backed the case for the Federal Reserve to raise interest rates.

Gold fell 0.3 per cent to $1,180.26 an ounce. It slid 1.7 per cent on Thursday, the most since March 6.

The metal all but erased April’s gains on Thursday when a report showed applications for jobless benefits declined to a 15—year low.

Meanwhile, bullion had climbed to a three—week high on April 28 as economists pushed back expectations for when the Fed will raise rates amid mixed US economic data.

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