Gold rallies on downbeat US employment data

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Thursday as U.S. initial jobless claims rebounded, easing slightly worries about an earlier-than-expected rate hike.

The most active gold contract for December delivery gained 2.4 U.S. dollars, or 0.21 percent, to settle at 1,161.5 dollars per ounce.

The U.S. Department of Labor said initial jobless claims remained low while still rising 12,000 to 290,000 during the week ending Nov. 8. This is the highest reading in almost two months. The four week average rose 6,000 to 285,000, which analysts note is the highest reading in five weeks.

Additionally, New York Federal Reserve President William C. Dudley, known as on the dovish side, indicated at a speech in Dubai on Thursday that it is still too early to raise interest rates.

The U.S. dollar is also giving way to gold with the dollar index, a measure of the dollar's strength against six major currencies, dropping slightly on Thursday. Gold and the dollar typically move in opposite directions, and a rise in the dollar prompts investors to shift into equities, a higher-yielding asset.

Silver for December delivery lost 0.2 cents, or 0.01 percent, to close at 15.621 dollars per ounce. Platinum for January delivery lost 6.3 dollars, or 0.52 percent, to close at 1,199 dollars per ounce.