Gold futures extended modest losses Friday after data showed producer prices at the wholesale level rose in line with expectations in May.
Gold for August delivery on Comex fell $3.40, or 0.3%, at $1,177 U.S. an ounce, while July silver lost 16 cents, or 1%, to $15.80 U.S. an ounce.
Gold is still on track for a 0.9% weekly rise, but saw gains from earlier this week dented as the dollar regained its footing as attention shifted back to prospects for a near-term interest-rate hike.
The U.S. Labor Department on Friday said producer prices rose a seasonally-adjusted 0.5% in May, driven by a sharp rise in the cost of gasoline and other fuels. The rise, the largest since the fall of 2012, was in line with forecasts. Stripping out volatile food and energy prices, the core producer-price index fell 0.1%.
Strong May retail sales data and upward revisions to data from previous months and last week’s stronger-than-expected jump in non-farm payrolls showed the U.S. economy is recovering from a weak first quarter, analysts said.
Tighter monetary policy is a negative for gold. But some analysts see room for some upside in the near term, particularly as Greece’s debt drama continues to play out.
In other metals trade, July platinum fell $8.60, or 0.8%, to $1,096.60 U.S. an ounce, while September palladium lost $4.75, or 0.6%, to $738.10 U.S. an ounce.
July copper rose 0.4 cent, or 0.1%, to $2.673 U.S. a pound.
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