Gold futures fell below $1,400 U.S. Friday as economic data beat expectations and the dollar rose.
Gold for August delivery fell $17, or 1.2%, to $1,394.90 U.S. an ounce on the New York Mercantile Exchange’s Comex division. Gold futures settled at $1,412 U.S. an ounce on Thursday.
Chicago PMI data rose to a reading of 58.7 in May, the best reading in more than a year, beating expectations of 49.9. Separately, the University of Michigan and Thomson Reuters consumer-sentiment index jumped to a final May reading of 84.5, also rising more than economists had forecast.
The dollar reversed its decline Friday, with the ICE dollar index rising to 83.491 after the data from late Thursday’s 83.022. A weaker dollar tends to help the prices of gold and other dollar-denominated commodities by making them cheaper for holders of other currencies.
Gold futures are set to close down in May, in line with the improving backdrop that is leading investors away from safe-haven assets like gold. Apart from March, gold futures have fallen each month beginning in October. Those futures are down about 17% in 2013 to date.
July silver shed 52 cents, or 2.3%, to $22.17 U.S. an ounce, compared to its 1.1% rise on Thursday.
July copper lost two cents, or 0.7%, to trade at $3.29 U.S. a pound.
Copper futures could react to official China manufacturing data due out Saturday. Investors will be watching to see if the government-sponsored Purchasing Managers’ Index matches preliminary results from a privately-compiled version, produced by HSBC and Markit, which showed Chinese manufacturing activity contracting in May.
July platinum gave up $29, or 1.9%, at $1,453.90 U.S. an ounce, while September palladium dropped $15, or 2%, to $745.50 U.S. an ounce.
