Investing.com - Escalating tensions in eastern Ukraine partially
offset a fresh batch of upbeat U.S. economic indicators on Friday
off earlier lows.
On the Comex division of the New York Mercantile Exchange, gold
futures for December delivery traded at 1,287.90 a troy ounce
during U.S. trading, down 0.19%, up from a session low of $1,284.40
and off a high of $1,292.30.
The December contract settled up 0.55% at $1,283.00 on
Futures were likely to find support at $1,273.40 a troy ounce,
the low from Aug. 21, and resistance at $1,297.60, Thursday's
Upbeat U.S. data pushed gold prices down on Friday.
The Thomson Reuters/University of Michigan revised consumer
sentiment index came in at 82.5 this month, up from a preliminary
reading of 79.2 and exceeding expectations for a reading of
July's final reading came in at 81.8, and the uptick in the
final August reading bolstered the dollar by keeping expectations
firm that the Federal Reserve will close stimulus programs around
October and hike interest rates some time in 2015.
Separately, data revealed that the Chicago-area purchasing
managers' index rose to 64.3 in August from 52.6 in July, beating
expectations for an increase to 56.0.
On a less positive note, the Bureau of Economic Analysis
reported that U.S. personal spending fell 0.1% last month,
confounding expectations for a 0.2% rise, after an increase of 0.4%
in June, though Friday's overall positive data coupled with upbeat
reports from earlier this week reminded markets that the days of
ultra-loose U.S. monetary policy that have supported gold for years
are coming to a close.
On Thursday, the Commerce Department reported that U.S. economy
grew at a revised annualized rate of 4.2%, up from a preliminary
estimate of 4.0% and better than market forecasts for a downward
revision to 3.9%.
Geopolitical issues cushioned gold's losses.
Reports that Russian troops have entered Ukraine to assist
pro-Moscow separatists fueled safe-haven demand for the precious
metal due to concerns that the conflict will dampen the global
economy-especially if Russia sees fresh sanctions-and drag on U.S.
recovery as a consequence.
Meanwhile, silver for December delivery was down 0.44% at
$19.523 a troy ounce, while copper futures for December delivery
were up 0.49% at $3.166 a pound.
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