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Gold futures edge higher, as euro resumes slide

Published 03/13/2015, 01:18 PM
Updated 03/13/2015, 01:29 PM
Gold moved above $1,153 an ounce on Friday
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Investing.com -- Gold prices edged forward on Friday, as the euro resumed its slide and weaker than expected U.S. data curbed investor expectations of short-term economic growth.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery inched up 1.40 or 0.12% to 1,153.20 a troy ounce. Gold futures fell steadily in U.S. afternoon trading after peaking at 1,1680.80 hours earlier on a lightly traded session.

After dipping more than $30 last Friday to erase all of its yearly gains for 2015, gold futures still remain above its 52-week low of $1,142.47 reached in mid-November.

On Friday morning, gold futures moved modestly higher after a report released by the U.S. Department of Labor indicated that producer prices for the month of February declined by 0.5%. Previously, economists had forecasted an uptick of 0.3% following a drop of nearly 1% a month earlier.

Elsewhere, the University of Michigan's Consumer Sentiment Index fell sharply to 91.2 in March from a 95.4 level last month. The index was expected to rise slightly to 95.5.

The U.S. dollar, meanwhile, continued its path forward reaching a level not seen in nearly 12 years. The U.S. Dollar Index, which measures the greenback versus a basket of six major currencies, cracked the historic 100 barrier underscoring the strength of the dollar. The index reached 100.28 in U.S. morning trading before falling slightly back hours later.

Dollar-denominated commodities such as gold become more appealing to holders of the domestic currency when it appreciates.

Metal traders await next week's critical Federal Open Market Committee meetings when the Fed could provide on indications on how shortly it might raise interest rates. If the Fed decides to remove a reference to "remaining patient," in its minutes, it typically indicates that the U.S. central bank is ready to raise interest rates at either of its next two meetings. After next week's meeting, the FOMC will meet in June and September.

In China, the Shanghai SE Composite Index gained 23.59 or 0.7 to 3,372.91 on a down day for equities markets worldwide. China is the world's second-largest purchaser of the precious metal behind India.

Silver futures, meanwhile, for May delivery were down 0.021 or 0.14% to trade at 15.495 a troy ounce.

Copper delivery for May rose 0.005 or 0.18% to $2.663 a pound.

Elsewhere, Platinum for April delivery rose 0.50 to 1,115.40, after falling to its lowest level since July, 2009 earlier in the week.

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