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Gold futures rise ahead of U.S. economic reports

Published 03/13/2015, 03:52 AM
Gold futures gain ground on U.S. retail sales; more data ahead
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Investing.com - Gold prices rose on Friday, as markets eyed the release of U.S. economic reports later in the day after a report on Thursday showed that U.S. retail sales fell unexpectedly last month.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were up 0.55% at $1,158.20.

The April contract ended Thursday's session 0.11% higher at $1,151.90 an ounce.

Futures were likely to find support at $1,146.50, the low from March 11 and resistance at $1,269.60, the high from March 10.

Gold prices strengthened after the U.S. Commerce Department reported on Thursday that retail sales fell 0.6% in February, the third consecutive monthly decline. Economists had forecast in increase of 0.3%.

The weak data prompted investors to push back expectations for a rate hike in the U.S.

A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.

At the same time the Labor Department reported that the number people filing new claims for unemployment benefits fell by 36,000 to 289,000 last week, indicating that the recovery in the labor market is continuing to strengthen.

Traders now awaited the release of data on producer prices and consumer sentiment due later Friday, for further indications on the strength the U.S. economy.

Elsewhere in metals trading, silver futures for May delivery rose 0.32% to $15.565 a troy ounce, while copper futures for May delivery added 0.26% to $2.665 a pound.

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