Investing.com - Gold prices fell on Friday after investors locked in gains stemming from Federal Reserve Chairman Ben Bernanke's dovish comments made earlier this week and sold the commodity for profits.
Gold prices shot up earlier this week after Bernanke said ultra-loose monetary policies, including the Fed's monthly USD85 billion asset-purchasing program, will stay in place for the foreseeable future.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were down 0.33% at USD1,275.65 a troy ounce in U.S. trading on Friday, up from a session low of USD1,266.55 and down from a high of USD1,287.05 a troy ounce.
Gold futures were likely to find support at USD1,214.55 a troy ounce, Monday's low, and resistance at USD1,297.05, Thursday's high.
Gold prices shot up after Fed Chairman Bernanke said Wednesday evening that the U.S. economy still requires highly accommodative monetary policies just hours after the release of the minutes from the Fed's June monetary policy meeting, which revealed other U.S. central bankers felt likewise.
Stimulus tools weaken the dollar and make gold an attractive hedge, though by Friday, profit-taking erased the yellow metal's gains.
Soft economic indicators released in the U.S. and Europe on Friday also contributed to gold's decline by strengthening the dollar.
Euro zone industrial production fell 0.3% in May, according to official data, surpassing market calls for a 0.2% decline after a 0.5% increase the previous month.
The numbers pressured the euro lower, as the European Central Bank has suggested that interest rates may remain at their currently low levels or possible fall even further, which bolstered the greenback.
Meanwhile in the U.S. the preliminary Thomson Reuters/University of Michigan consumer sentiment index fell to 83.9 in July from 84.1 in June, defying expectations for a rise to 85.0.
Separately, the U.S. Department of Labor said producer price inflation rose 0.8% in June, beating expectations for a 0.5% gain and above a 0.5% increase the previous month.
The core producer price index, which excludes food and energy, rose 0.2% last month compared to expectations for a 0.1% increase, beating a 0.1% rise in May.
Elsewhere on the Comex, silver for September delivery was down 0.82% at USD19.793 a troy ounce, while copper for September delivery was down 0.78% and trading at USD3.153 a pound.
Gold prices shot up earlier this week after Bernanke said ultra-loose monetary policies, including the Fed's monthly USD85 billion asset-purchasing program, will stay in place for the foreseeable future.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery were down 0.33% at USD1,275.65 a troy ounce in U.S. trading on Friday, up from a session low of USD1,266.55 and down from a high of USD1,287.05 a troy ounce.
Gold futures were likely to find support at USD1,214.55 a troy ounce, Monday's low, and resistance at USD1,297.05, Thursday's high.
Gold prices shot up after Fed Chairman Bernanke said Wednesday evening that the U.S. economy still requires highly accommodative monetary policies just hours after the release of the minutes from the Fed's June monetary policy meeting, which revealed other U.S. central bankers felt likewise.
Stimulus tools weaken the dollar and make gold an attractive hedge, though by Friday, profit-taking erased the yellow metal's gains.
Soft economic indicators released in the U.S. and Europe on Friday also contributed to gold's decline by strengthening the dollar.
Euro zone industrial production fell 0.3% in May, according to official data, surpassing market calls for a 0.2% decline after a 0.5% increase the previous month.
The numbers pressured the euro lower, as the European Central Bank has suggested that interest rates may remain at their currently low levels or possible fall even further, which bolstered the greenback.
Meanwhile in the U.S. the preliminary Thomson Reuters/University of Michigan consumer sentiment index fell to 83.9 in July from 84.1 in June, defying expectations for a rise to 85.0.
Separately, the U.S. Department of Labor said producer price inflation rose 0.8% in June, beating expectations for a 0.5% gain and above a 0.5% increase the previous month.
The core producer price index, which excludes food and energy, rose 0.2% last month compared to expectations for a 0.1% increase, beating a 0.1% rise in May.
Elsewhere on the Comex, silver for September delivery was down 0.82% at USD19.793 a troy ounce, while copper for September delivery was down 0.78% and trading at USD3.153 a pound.