Investing.com - Gold prices slid lower on Friday, as traders locked in profits from the precious metal’s rally to 23-month highs on Thursday, sparked by a broadly weaker U.S. dollar.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery lost 1.03% to $1,285.05.
The August contract ended Thursday’s session 0.78% higher at $1,298.40 an ounce.
Futures were likely to find support at $1,273.0, the low of June 13 and resistance at $1,316.40, Thursday’s high and a 23-month peak
The U.S. dollar weakened broadly after the Federal Reserve kept rates unchanged at the conclusion of its two-day policy meeting on Wednesday and lowered forecasts for how much they expect to hike interest rates in the next few years.
Gold is sensitive to moves in U.S. rates, as a rise would lift the opportunity cost of holding non-yielding assets such as bullion.
Sentiment on the greenback also remained vulnerable after the U.S. Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits in the week ending June 11 increased by 13,000 to 277,000.
In addition, the U.S. Commerce Department said consumer prices rose 0.2% in May, compared to expectations for a 0.3% gain. Year-over- year, consumer prices were 1.0% higher last month, below expectations for a 1.1% gain.
Investors were now eyeing the release of data on U.S. building permits and housing starts later in the day, for further indications on the strength of the economy.
Prices of the precious metal are up more than 8% so far in June, as market players pushed back expectations for the next U.S. rate hike and amid mounting concerns the U.K. will vote to leave the European Union in a referendum next week.
A series of recent opinion polls showed a big lead for the "leave" camp ahead of the country's June 23 referendum.
Elsewhere in metals trading, silver futures for July delivery tumbled 1.52% to $17.345 a troy ounce, while copper futures for July delivery jumped 1.12% to $2.071 a pound.