Investing.com - Gold prices rose in U.S trading on Friday after European policymakers opted to lift a lending ceiling on bailout funds, while surprisingly strong consumer sentiment data in the U.S. sparked a dollar selloff that sent gold rising.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded up 0.89% at USD1,669.65 a troy ounce.
Gold futures were likely to test support at USD1,647.05 a troy ounce, Thursday's low, and resistance at USD1,699.55, Tuesday's high.
In Europe, economic policymakers have agreed to raise a combined lending ceiling for two rescue funds to EUR700 billion from EUR500 billion.
While the figure falls short of what the continent needs, the news sent the euro rising and dollar falling as part of a global risk-on trading session, which was bullish for gold, the greenback's traditional hedge.
News that Spanish Prime Minister Mariano Rajoy is planning to roll out an austere budget also fueled the dollar selloff, as did stronger than expected economic indicators in the U.S.
In the U.S., the Thomson Reuters/University of Michigan's consumer sentiment index for March rose to 76.2, the highest since February 2011, from 75.3 in February, outpacing analysts' expectations.
The Commerce Department, meanwhile, reported that personal spending rose 0.8% in February, the most in seven months and above expectations for a 0.6% gain, although incomes rose only 0.2%, a little less than expected.
Elsewhere on the Comex, silver for May delivery was up 1.42% and trading at USD32.445 a troy ounce, while copper for May delivery was up 0.94% and trading at USD3.832 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery traded up 0.89% at USD1,669.65 a troy ounce.
Gold futures were likely to test support at USD1,647.05 a troy ounce, Thursday's low, and resistance at USD1,699.55, Tuesday's high.
In Europe, economic policymakers have agreed to raise a combined lending ceiling for two rescue funds to EUR700 billion from EUR500 billion.
While the figure falls short of what the continent needs, the news sent the euro rising and dollar falling as part of a global risk-on trading session, which was bullish for gold, the greenback's traditional hedge.
News that Spanish Prime Minister Mariano Rajoy is planning to roll out an austere budget also fueled the dollar selloff, as did stronger than expected economic indicators in the U.S.
In the U.S., the Thomson Reuters/University of Michigan's consumer sentiment index for March rose to 76.2, the highest since February 2011, from 75.3 in February, outpacing analysts' expectations.
The Commerce Department, meanwhile, reported that personal spending rose 0.8% in February, the most in seven months and above expectations for a 0.6% gain, although incomes rose only 0.2%, a little less than expected.
Elsewhere on the Comex, silver for May delivery was up 1.42% and trading at USD32.445 a troy ounce, while copper for May delivery was up 0.94% and trading at USD3.832 a pound.