Gold futures edged higher for a second day Friday, buoyed as economic data cooled expectations for a rate hike as early as June, but remained on track for a weekly loss.
Gold for April delivery on Comex rose $5.00, or 0.4%, to $1,156.90 U.S. an ounce after eking out a gain of $1.30 on Thursday. May silver rose nearly five cents, or 0.3%, to $15.565 U.S. an ounce.
Gold held on to gains after data showed the U.S. producer-price index fell by a seasonally adjusted 0.5% in February. Economists had forecast a 0.4% increase. Excluding trade, food and energy, wholesale prices were flat on the month.
Gold is seeing some consolidation after a frantic week, albeit near the low end of its recent range. Physical demand is starting to perk up, but a stronger dollar and push back above 2% on 10-year Treasury note yields continue to provide headwinds, some experts noted.
A stronger dollar weighs on commodities priced in the currency, making them more expensive to users of other currencies. Rising bond yields can also dull the luster of gold and other commodities, which offer no yield.
Expectations for a June rate hike by the Federal Reserve were dented Thursday by a weaker-than-expected retail sales report.
In other metals trade, April platinum rose $5.60 or 0.5%, at $1,120.50 U.S. an ounce, while June palladium rose $41.5, or 0.5%, to $791.10 U.S. an ounce.
May copper futures rose a penny, or 0.4%, to $2.6685 U.S. a pound.
