Gold down in technical correction

Gold futures on the COMEX division of the New York Mercantile Exchange fell Thursday in technical correction, putting an end to a six-session winning streak.

The most active gold contract for August delivery fell 5.6 U.S. dollars, or 0.42 percent, to settle at 1,317 dollars per ounce.

Gold dropped Thursday although all factors pointed to supporting gold: tensions in Iraq remained and Chinese authorities reportedly uncovered a 15-billion-dollar gold financing scheme that began two years ago.

U.S. economic data released Thursday were weak, also supportive of gold. U.S. Department of Commerce said Thursday that U.S. consumer spending climbed only 0.2 percent in May, well below market expectations.

Gold briefly pared its decline shortly after St. Louis Fed President James Bullard Thursday indicated his belief that inflation should rise above 2 percent in 2015. His remarks came after U.S. Department of Commerce said in a report that the personal consumption expenditure index, the Federal Reserve's favored measure of inflation, rose 0.2 percent in May, the highest 12-month rate since October 2012.

As inflation is building up, market analysts took gold's fall Thursday as a temporary one as gold is often seen as a hedge against inflation.

Silver for July delivery lost 0.8 cents, or 0.04 percent, to close at 21.108 dollars per ounce. Platinum for October delivery slipped 3 dollars, or 0.2 percent, to close at 1,471.3 dollars per ounce.