CHICAGO – Gold futures on the COMEX division of the New York Mercantile Exchange fell on Friday as investors reacted to higher than expected US Personal Consumption Expenditures Price Index data, reported Xinhua.
The most active gold contract for April delivery fell US$9.70s, or 0.53 per cent, to close at US$1,817.10 per ounce.
The US Commerce Department reported Friday that US core Personal Consumption Expenditures Price Index excluding food and energy increased 0.6 per cent month on month and 4.7 per cent year on year in January. Market has been expecting the respective readings at 0.5 per cent and 4.4 per cent.
Higher than expected inflation data boosted expectations for interest rate increases by the Federal Reserve, supporting the US dollar and Treasury yields.
Cleveland Federal Reserve Bank President Loretta Mester said in an interview with CNBC on Friday that she hasn’t decided yet whether she would like the central bank to raise interest rates by 50 basis points at its next meeting in March.
The US Commerce Department reported Friday that US new home sales increased 7.2 per cent to a seasonally adjusted annual rate of 670,000 units in January, the highest level since March 2022.
Gold ended the week with a 1.8-per cent loss, logging the fourth straight weekly loss at a 2023 low.
Silver for March delivery fell 49.60 cents, or 2.33 per cent, to close at US$20.81 per ounce. Platinum for April delivery fell US$37.60, or 3.98 per cent, to close at US$907.90 per ounce. – Bernama
