News Column

Gold Ends A Shade Lower, Down 1.2% For Week

May 9, 2014

WASHINGTON (Alliance News) - Gold futures slipped for a fourth straight session to end a shade lower Friday, as the dollar trended higher on some positive economic data, even as the precious metal struggled to find support with developments in Ukraine.

Some positive comments made by the US Federal Reserve Chair Janet Yellen before the Congress on the economy also impacted gold.

Chinese inflation slowed more-than-expected to an 18-month low in April, while the negative trend in producer prices persisted for the 26th straight month, providing the government scope to introduce more stimulus to achieve its 7.5% growth target.

German exports in March declined at the fastest pace since last May, and imports fell for the first time this year, as the Ukraine crisis and the slowdown in China weighed on demand.

Gold for June delivery, the most actively traded contract, dropped USD0.10 to close at USD1,287.60 an ounce on the Comex division of the New York Mercantile Exchange on Friday.

Gold for June delivery scaled an intraday high of USD1,294.50 and a low of USD1,285.50 an ounce.

Yesterday, gold ended lower amid some positive data from the US and China, but finding some support after the Russian president called for a peaceful resolution to the conflict in Ukraine.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 782.85 tons on Friday from its previous close.

The dollar index, which tracks the US unit against six major currencies, traded at 79.87 on Friday, up from its previous close of 79.44 late Thursday in North American trade. The dollar scaled a high of 79.89 intraday and a low of 79.42.

The euro traded lower against the dollar at USD1.3757 on Friday, as compared to its previous close of USD1.3840 late Thursday in North America. The euro scaled a high of USD1.3844 intraday and a low of USD1.3754.

In economic news from the US, wholesale inventories rose more than expected in March, a report from the Commerce Department showed Friday. Inventories rose 1.1% in March, while anticipated a 0.4% increase. Wholesale inventories for February were revised up 0.7%, higher than the prior 0.5% reading.

From Europe, UK manufacturing output maintained growth momentum for the fourth consecutive month in March, with robust exports taking the visible trade gap to its lowest since December, a report from the Office for National Statistics showed Friday. Manufacturing output gained 0.5% in March from February and exceeded the 0.3% rise forecast by economists.

Meanwhile, industrial output dropped slightly by 0.1%, largely due to a plunge in oil and gas extraction. Production was forecast to decrease 0.2% after rising 0.8% in February.

Germany's trade surplus declined to a seasonally adjusted EUR 14.8 billion from EUR 15.8 billion in February. The unadjusted surplus, meanwhile, rose to EUR 16.4 billion from EUR 16.2 billion.

German exports fell 1.8% month-on-month in March, sharper than the 1.3% fall seen in February, data from Destatis revealed Friday. Economists had forecast a 1.3% rise. Imports slid 0.9% on a monthly basis, the first fall in three months, reversing a 0.4% rise in February. Economists expected a 0.6% increase for March.

China's Inflation eased notably to 1.8% in April from 2.4% in March, the National Bureau of Statistics said Friday. Overall inflation was slower than the expected 2.1% and remains within the government's full year 3.5% target.

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Source: Alliance News