Investing.com - Gold prices erased recent gains stemming from
expectations for U.S. monetary policy to stay loose and fell on
Friday after U.S. wholesale pricing data beat market
On the Comex division of the New York Mercantile Exchange, gold
futures for June delivery traded at $1,318.60 a troy ounce during
U.S. trading, down 0.14%, up from a session low of $1,314.40 and
off a high of $1,324.20.
The June contract settled up 1.12% at $1,320.50 on Thursday.
Futures were likely to find support at $1,295.90 a troy ounce,
Monday's low, and resistance at $1,324.90, Thursday's high.
Gold prices shot up this week after language out of the Federal
Reserve suggested that interest rates will remain low for some time
due to soft inflation rates and a slack labor market.
On Friday, prices got a shot in the arm after U.S. wholesale
prices came in stronger than expected for March.
Official data released earlier showed that the U.S. producer
price index rose 0.5% in March, exceeding expectations for a 0.1%
gain, after a 0.1% fall the previous month.
Core producer price inflation, which is stripped of volatile
food, energy and trade items, rose 0.6% in March, beating
expectations for a 0.2% rise after a 0.2% decline in February.
Elsewhere, the preliminary Thomson Reuters/University of
Michigan consumer sentiment index came to 82.6 in April, beating
expectations for a 81.0 reading.
Still, growing market consensus that the Federal Reserve is
nowhere close to tightening policy cushioned gold's losses.
Meanwhile, silver for May delivery was down 0.66% at US$19.958 a
troy ounce, while copper futures for May delivery were down 0.11%
at US$3.042 a pound.
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