Gold futures declined on Thursday after reaching record levels in earlier sessions. The appreciation o fUS dollar was the main reason behind the bullish sentiments for gold. The dollar index DXY which measures the US dollar movement against its major six rival currencies gained to 74.209 on Thursday as compared to 74.088 on Wednesday’s late trading hours.

Michael Smith from T & K Futures and Options in Florida commented, “A lot of people are turning to the gold market … but some are now realizing (the debt ceiling debate) is probably a political farce and lawmakers will agree on deal,” he further added, “It’s just going to get higher until someone stabilizes the dollar.”

Gold futures contract for December delivery which also happens to be the most traded contract, slipped 0.1 percent or $1.10 to $1,616.20 per ounce on Comex trading of New York Mercantile Exchange. Most of analysts believe that gold futures could see further correction and foresee correction around $1,580 per ounce.

The positive US economic data also made investor shift their focus from safe haven status of gold. As per the data of US Labor Department, initial jobless claims dropped to 398,000 in the last week from 400,000 earlier.

Other base metals also declined except copper futures for September delivery which gained 0.5 percent or $0.02 to $4.47 per pound. Silver futures contract for September delivery declined 1.9 percent or $0.77 to $39.79 per ounce.

Platinum futures contract for October delivery fell 0.9 percent of $15.60 to $1,792.40 per ounce while its sister metal palladium for September delivery slipped 0.6 percent or $5.10 to $828.10 per ounce.