Gold prices fell Friday, though the metal was still set to finish a volatile week with gains. Copper prices took another sharp leg lower as China worries continued to plague investors.
Gold for December delivery rose $8.10, or 0.6%, to $1,337.60 U.S. an ounce, guided by a decline in the U.S. dollar against major rivals. Gold for August delivery fell $5.10 to $1,323.60 U.S. an ounce.
Next week, the Fed will meet on Wednesday and on Friday, the U.S. Labor Department will release its widely-watched monthly jobs report.
A weaker greenback wasn't doing much for gold. While it was at one-month lows against the euro and the British pound, based on the ICE dollar index it was still facing a loss of more than 1% for the week.
A softer dollar tends to encourage buying of gold and other U.S.-dollar-denominated commodities by holders of other currencies.
On Thursday, gold prices logged their first advance in three sessions as the dollar fell and after mixed U.S. economic data. Durable-goods orders in June came in better than expected, but weekly jobless claims posted a modest increase of 7,000 claims to 343,000. Economists had expected an increase to 342,000.
The Federal Reserve is closely watching developments in the labour market as it assesses its next move on monetary stimulus, which has been considered positive for the gold market.
The Fed has said improvement in the overall economy would lead it to begin slowing the pace of asset purchases. Economists and analysts have pointed to the possibility of the Fed making such a move at its September meeting.
Gold started the week on a strong footing, with a jump of $43, or 3.3% on Monday for the now-expired August gold contract. That was the metal’s largest one-day gain since late June 2012. The move also pushed gold above the $1,300-U.S. an-ounce level for the first time in five weeks.
U.S. consumer sentiment hit a six-year high, rising to 85.1 in July, according to a final reading of the data from University of Michigan/Thomson Reuters. That was well above expectations for a reading of 84 and above a preliminary reading of 83.9.
Getting hit hard Friday, September copper fell seven cents, or 2.2%, to $3.12 U.S. a pound, eroding chances for a weekly gain and instead looking at a loss of 0.8%. Copper has been hit by consistent losses for China stocks -- the country is a big user of the metal -- and a downbeat outlook and results from Caterpillar Inc. earlier in the week.
October platinum took a sharp tumble, dropping $13.80, or 1%, to $1,434.10 U.S. an ounce, leaving it up 0.2% on the week so far.
September palladium lost $7.75, or 1%, to $733 U.S. an ounce. It was likely to finish the week lower by more than 2%
