Gold falls on consumer sentiment data, hawkish Fed comments
Published May 17, 2013 12:28PM ET
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were down 1.86% at USD1,361.05 a troy ounce in U.S. trading on Friday, up from a session low of USD1,357.85 and down from a high of USD1,391.25 a troy ounce.
Gold futures were likely to test support USD1,347.50 a troy ounce, the low from April 18, and resistance at USD1,444.15, Tuesday's high.
The Thomson Reuters/University of Michigan's preliminary consumer sentiment index rose to 83.7 in May from 76.4 in April, surging past expectations for a rise to 78.0.
The University of Michigan also said its inflation expectations for this month remained unchanged at 3.1%.
The numbers came a day after Federal Reserve Bank of San Francisco President John Williams said that monetary authorities may begin to unwind stimulus programs this summer and possibly end such policies by year end.
Philadelphia Fed President Charles Plosser, a known inflation hawk, added separately that the Fed should consider scaling back accommodative policies next month.
Monetary stimulus tools, such as low interest rates, dovish language and the Fed's monthly USD85 billion asset-purchasing program, weaken the dollar to spur recovery.
Weak industrial output, inflation data and other economic indicators had many investors betting in recent sessions that the Fed may prolong dismantling stimulus programs, which pressured the dollar lower until Friday's data broke and gave the greenback room to rise.
Gold and the dollar tend to trade inversely from one another.
Elsewhere on the Comex, silver for July delivery was down 1.49% at USD22.322 a troy ounce, while copper for July delivery was up 0.73% and trading at USD3.318 a pound.
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Written By: Investing.com
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