Gold trims losses, as Ukraine unrest cushions blow from U.S. data

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Investing.com - Escalating tensions in eastern Ukraine partially offset a fresh batch of upbeat U.S. economic indicators on Friday and brought gold prices 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 Thursday.

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 high.

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 80.1.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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