Forexpros - Gold futures fell off of a five week high after the release of neutral U.S. inflation data, positive labor market news and Greek worries triggered investors to embrace risk assets.  

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1653.95 a troy ounce during late U.S. trade falling 0.36%.  

It earlier climbed as much as 0.85% to hit USD1670.45 a troy ounce, the highest since December 13th, 2011.   

Gold futures were likely to find support at USD1643.15 a troy ounce, the previous day's low and technical resistance exists at USD1670.45 a troy ounce, today's high.   

Weakness in the U.S. dollar did little to lift precious metal prices.  The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, gave back 0.43% to trade at 80.33.   

Interestingly, gold's correlation with the euro/dollar exchange rate is at its most positive in nearly 2 years. This means that gold is more likely to move in synch with the euro than at any other time since January 2010.        

Gold prices dropped when Spain sold EUR6.6billion of bonds maturing in 2016, 2019 and 2022 beating the maximum target of EUR4.5billion. Yields on the 2019 and 2022 dropped, but borrowing costs increased on the 2016's.   

The European Central Bank fueled the risk appettite by stating that it has a whole range of unconventional measures to manage the debt crisis, further pressuring the yellow metal.   

However, news that a group of hedge funds is considering suing Greece over their losses, in human rights court, kept fear alive in the struggling euro zone nation.   

Initial U.S. jobless benefit claims plummeted 50,000 to 352,000 in the week ending January, 14th.  This crushed the median analyst's forecast of 384,000.  

In addition, a flat consumer price report from the U.S. reduced the inflation hedge appeal of the precious metal.  

Elsewhere on the Comex, silver for March settlement fell 0.14% to trade at USD30.50 a troy ounce, while March copper futures surged 1.42% to trade at USD3.81 a pound.

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