Gold Ends Lower On Upbeat Data, Despite Weak Dollar
Washington (Dec 13) Gold futures ended lower for a third straight session on Friday, on some upbeat economic data from the US with the Thomson Reuters and the University of Michigan consumer sentiment index rising more than expected in December.
Nevertheless, the losses were limited as the dollar weakened against some major currencies and global equity markets declined. In some encouraging economic news, a Thomson Reuters and the University of Michigan report showed US consumer sentiment index to have jumped to a near eight-year high in December, the highest level since January 2007.
Investors continued to mull over some robust retail sales data released yesterday, which showed a more than expected increase in November, signaling some significant overall economic uptick.
Gold for February delivery, the most actively traded contract, dropped USD3.10 or 0.3% to settle at USD1,222.50 an ounce on the Comex division of the New York Mercantile Exchange on Friday.
Gold for February delivery scaled an intraday high of USD1,228.90 and a low of USD1,214.80 an ounce.
On Thursday, gold futures ended at USD1,225.6 an ounce, down USD3.80 or 0.3%, weighed down by a strong dollar on the back of some encouraging reports on US retail sales and unemployment claims, with global equity markets firming.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, edged higher to 725.75 tons on Friday, from its previous close of 724.80 tons on Thursday.
The dollar index, which tracks the US unit against six major currencies, traded at 88.32 on Friday, down from its previous close of 88.55 late Thursday in North American trade. The dollar scaled a high of 88.64 intraday and a low of 88.11.
The euro trended higher against the dollar at USD1.2455 on Friday, as compared to its previous close of USD1.2413 late Thursday in North American trade. The euro scaled a high of USD1.2486 intraday and a low of USD1.2385.
In economic news, data from the US Labor Department showed producer prices to have declined 0.2% in November. Economists expected the index to decline 0.1% month-over-month in November.
A Thomson Reuters and the University of Michigan report showed the preliminary reading on the consumer sentiment index for December at 93.8, compared to the final November reading of 88.8. Economists expected the index to show a more modest increase of 89.5.
A report from China's National Bureau of Statistics showed industrial production to have advanced 7.2% in November from last year. This was the weakest growth in three months and slower than the 7.7% increase seen in October and 7.5% growth forecast by economists.
In economic news from eurozone, data from Eurostat showed eurozone industrial output to have edged up by a less than expected 0.1% October, after a revised 0.5% increase in the preceding month.
Elsewhere in Europe, the leading economic index in the UK declined for a second straight month in October, the Conference Board said Friday. The leading economic index dropped 0.3% in October, same as in the previous month, which was revised from 0.4%. In August, the index climbed 0.4%.
Source: NewsEdge
