Gold up slightly on worse-than-expected US economic growth data
Chicago - XINHUA
Gold futures on the COMEX division of the New York Mercantile Exchange rose Friday after worse-than-expected U.S. economic growth data.
The most active gold contract for April delivery rose 0.3 U.S. dollar, or 0.03 percent, to settle at 1,116.40 dollars per ounce.
Based on the most-active contracts, gold futures climbed some 1.83 percent for the week. For the month, gold futures advanced some 5.3 percent, highest monthly gain since January 2015.
Gold was given support Friday as a report released by the U.S. Department of Commerce Friday showed the gross domestic product of the world's largest economy increasing by an annualized rate of 0.7 percent. Analysts note that the measure of consumer spending, specifically final demand, rose by 1.2 percent, the weakest reading of the measure since the first quarter of 2015 and provided further support for gold futures.
However, the precious metal was prevented from rising further as the U.S. Dollar Index rose Friday. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.
The U.S. Dow Jones Industrial Average (DJIA) also rebounded by 1.88 percent Friday, in a sign of confidence, but analysts noted that this remains the weakest January for the DJIA in recent history. When equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.
The precious metal's price was put under further pressure as the market remains unsure of when the next rate hike will occur.
Silver for March delivery rose 1.1 cents, or 0.08 percent, to close at 14.243 dollars per ounce. Platinum for April delivery added 6.4 dollars, or 0.74 percent, to close at 874.30 dollars per ounce.