Gold futures on the COMEX division of the New York Mercantile Exchange rose sharply on Thursday, as an increase in U.S. initial jobless claims boosted expectation for additional quantitative easing program.

The most active gold contract for June delivery rose 20.3 U.S. dollars, or 1.2 percent, to settle at 1,680.6 dollars per ounce.

Market analysts said gold saw an early bounce from the morning release of U.S. initial jobless claims, which rose by 13,000 last week. The report from the U.S. Department of Labor also noted that the four week moving average of jobless claims increased to 368, 500, its highest level in a month.

Gold gained on the unemployment claims news, as the precious metal is traditionally seen as a safe haven in terms of economic difficulties and the increased claims indicated there still may be significant issues in the U.S. labor market.

Moreover, comments from two U.S. Federal Reserve Bank officials not ruling out another round of quantitative easing policies further supported gold's rally. Traders seem to be of ideas that weaker U.S. employment data could prompt the Fed to further undertake loose monetary policy.

Outside market forces were likewise positive following hopes for more Fed stimulus, as the U.S. stock market rallied to extend Wednesday's gains and crude oil additionally traded up.

Silver also sharply gained Thursday with the positive outside market atmosphere. Silver for May delivery rose 1.004 dollars, or 3.19 percent, to settle at 32.525 dollars per ounce. July platinum gained 21.7 dollars, or 1.37 percent, to settle at 1,606 dollars per ounce.