Gold futures made a sudden turn lower on Friday, with analysts blaming the drop on profit-taking ahead of the weekend.
Earlier, news that the U.S. economy grew less than expected in the first quarter had lifted the metal’s safe-haven appeal.
Gold for June delivery shed $13.70, or 0.9%, to $1,448.30 U.S. an ounce on Comex division of the New York Mercantile Exchange.
Prices had been up by more than $10 an ounce from Thursday’s close, then lost steam and turned lower within a roughly 10-minute time span on Comex.
Analysis of the latest gold price forecasts shows that not everyone’s bearish on gold’s prospects, even after the spate of lowered forecasts that followed Goldman Sachs' on April 10
First-quarter U.S. gross domestic product grew an annualized 2.5%, falling short of expectations. And for April, the University of Michigan-Thomson Reuters consumer sentiment gauge fell to a final reading of 76.4, its lowest since January.
GDP was below consensus by a fair amount, and the data were another sign that quantitative easing and real interest rates will continue along the current path, according to experts.
QE tends to pressure the dollar and can lead to inflation. Gold is often seen as a hedge against inflation.
In the broader metals complex, May silver traded 35 cents lower, or 1.5%, at $23.78 U.S. an ounce, after a leap of 5.7% on Thursday.
Prices were set for a gain of almost 4% for the week. slipped 5 cents, or 1.7%, to trade at $3.18 a pound, trading 1% lower for the week.
May copper slipped five cents, or 1.7%, to trade at $3.18 U.S. a pound, trading 1% lower for the week. July platinum futures climbed $10.80, or 0.7%, at $1,474.90 U.S. an ounce, up about 3.6% for the week and palladium for June delivery shed $2.75, or 0.4%, to $678.65 U.S. n ounce, poised for a rise of 0.2% for the week
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