Gold prices traded higher on Friday, buoyed by a weaker dollar, after the release of mostly negative economic data while uncertainty over the outcome of the European elections continued to increase demand for the yellow metal.
Gold for April delivery on the Comex division of the New York Mercantile Exchange gained $2.15, or 0.17%, to $1,247.05 a troy ounce by 13:41 EDT.
Gold prices recovered from a dip earlier in the session, as the dollar slumped to lows, after the latest batch of economic data revealed a slowdown in personal spending and consumer sentiment.
Dollar denominated assets such as gold are sensitive to moves in the dollar, as a stronger greenback, makes the precious metal more expensive for foreign holders, which lessens demand.
The University of Michigan said its consumer sentiment index slipped to 96.9 in March from an initial estimate of 97.6, which was well below economists’ forecast of an unchanged reading.
The Commerce Department said on Friday consumer spending, which accounts for more than two-thirds of U.S. economic activity, rose 0.1% against expectations of a 0.2% increase.
Gold is on track for its best quarterly performance in a year, the yellow metal has benefited from a flight to safety in recent months, as investors sought refuge in the yellow metal amid uncertainty over the outcome of European election and growing concerns that President Trump’s promised economic stimulus package may be delayed.
Upside momentum in the precious could be capped in the coming months, as cash crunches in India due to the government’s recent demonetization will likely act as a temporary headwind for gold prices, according to a report from FocusEconomics Consensus Forecast – Commodities.
Elsewhere, silver futures, gained 0.25% to $18.267, a troy ounce while copper lost 0.62% to trade at $2.655.
Platinum lost 0.38% to $952.05 while Natural Gas shed 0.75% to $3.167.[:]