Gold Lifts on Soft Economic Data

Gold prices jumped Thursday following the release of more news of poor economic conditions in the manufacturing sector.

Benchmark bullion futures were up $15.50 at $882 an ounce in recent action on the Comex division of the New York Mercantile Exchange. Gold prices tend to rise on increased economic uncertainty.

The two exchange-traded funds that hold bars of solid gold, streetTracks Gold Shares GLD and iShares Comex Gold Trust IAU, were both up 1.9%.

The Federal Reserve says industrial production dropped 0.7% and capacity utilization fell below 80% in April, meaning that the part of the economy involved in making things shrank and operated more than 20% under its full potential.

"The current annual growth rate of production and the level of jobless claims suggest ongoing softness, [but] not a 'collapse' in activity," writes Michael Darda, Chief Economist at MKM Partners in Greenwich, Conn., in a recent research report.

Gold Prices Killing Jewelers

Turning to the precious metals patch, shares of Goldcorp GG and those of Yamana Gold AUY were both climbing about 3.6%.

In the currency markets, one euro was buying $1.5436 vs. $1.5457 on Wednesday. One U.S. dollar was buying 104.9 Japanese yen, down from 105.3 yen previously. The British pound was selling for $1.9448, vs. $1.9435 previously.

The CurrencyShares Euro Trust FXE was down 0.1%, and the CurrencyShares Japanese Yen Trust FXY was up 0.2%. The CurrencyShares British Pound Sterling FXB was essentially unchanged.