Investing.com - Gold prices fell in U.S. trading on Friday, as investors snapped up nicely priced dollar positions on fears the European debt crisis has spread from Greece to the larger Spain, where talk is growing that the European Central Bank must intervene in debt markets to lower borrowing costs.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded down 1.23% at USD1,659.85 a troy ounce in U.S. trading on Friday.
Gold futures were likely to test support at USD1621.25 a troy ounce, the low of April 5, and resistance at USD1,681.15, Thursday's high.
In Europe, rising yields in Spanish government debt auctions have been fueling fears the debt crisis has spread to Madrid and to contain it, the European Central Bank might return to its policy of buying government bonds to lower borrowing costs and ease the continent's financial woes.
Such sentiments sent investors stocking up on dollars, especially on sentiment that while similar monetary easing policies remain on the table in the U.S., they're not imminent, which made dollar more attractive to other currencies and asset classes, especially gold, the greenback's traditional hedge
In China, the country's gross domestic product grew 8.1% in the first quarter, below expectations for 8.3% growth and well beneath the fourth quarter's 8.9% expansion, which prompted investors worldwide to snap up greenbacks as well.
Aside from the monetary-related effects a Chinese slowdown can have on gold, the rising Asian economic giant is also a large physical buyer of the precious metal.
News out of the U.S. was fairly neutral in the metals markets.
The U.S. consumer price index rose 0.3% in March from February, in line with expectations, while core inflation rates, stripped of volatile food and energy prices, rose 0.2%, also in line with expectations.
The Thomson Reuters/University of Michigan's consumer sentiment fell to 75.7 for April from 76.2 in March, mainly due to fears that high gasoline prices will eat into household budgets.
Elsewhere on the Comex, silver for May delivery was down 3.39% and trading at USD31.423 a troy ounce, while copper for May delivery was down 2.57% and trading at USD3.625 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded down 1.23% at USD1,659.85 a troy ounce in U.S. trading on Friday.
Gold futures were likely to test support at USD1621.25 a troy ounce, the low of April 5, and resistance at USD1,681.15, Thursday's high.
In Europe, rising yields in Spanish government debt auctions have been fueling fears the debt crisis has spread to Madrid and to contain it, the European Central Bank might return to its policy of buying government bonds to lower borrowing costs and ease the continent's financial woes.
Such sentiments sent investors stocking up on dollars, especially on sentiment that while similar monetary easing policies remain on the table in the U.S., they're not imminent, which made dollar more attractive to other currencies and asset classes, especially gold, the greenback's traditional hedge
In China, the country's gross domestic product grew 8.1% in the first quarter, below expectations for 8.3% growth and well beneath the fourth quarter's 8.9% expansion, which prompted investors worldwide to snap up greenbacks as well.
Aside from the monetary-related effects a Chinese slowdown can have on gold, the rising Asian economic giant is also a large physical buyer of the precious metal.
News out of the U.S. was fairly neutral in the metals markets.
The U.S. consumer price index rose 0.3% in March from February, in line with expectations, while core inflation rates, stripped of volatile food and energy prices, rose 0.2%, also in line with expectations.
The Thomson Reuters/University of Michigan's consumer sentiment fell to 75.7 for April from 76.2 in March, mainly due to fears that high gasoline prices will eat into household budgets.
Elsewhere on the Comex, silver for May delivery was down 3.39% and trading at USD31.423 a troy ounce, while copper for May delivery was down 2.57% and trading at USD3.625 a pound.