Gold futures erased earlier losses Friday to trade higher as revised data showed the U.S. economy shrank less than expected in the first quarter.
Prices were poised to mark their first monthly gain in four months, but still traded lower for the week on the back of strength in the U.S. dollar.
Gold for August delivery rose $2.90, or 0.2%, to trade at $1,191.70 U.S. an ounce on Comex after earlier tapping a low of $1,186. On a most-active contract basis, gold futures are on track to end May with a 0.8% monthly gain, which would be their first since January. Gold’s still down about 1% for the week, according to FactSet data.
July silver advanced 9.1 cents, or 0.6%, to $16.76 U.S. an ounce. Prices were down up about 3.8% for the month and set to lose 1.7% for the week.
The U.S. economy shrank at an 0.7% annual pace in the first quarter, the Commerce Department reported Friday, versus an initial estimate of a 0.2% gain. Economists had forecast a 1% contraction.
U.S. data also released Friday showed that in May, the Chicago Purchasing Managers' Index took a plunge and consumer sentiment fell to a six-month low.
The ICE U.S. dollar index weakened Friday, but only modestly. For the week, the dollar was on track to book a second week of gains against the euro and Japanese yen Commodities priced in dollars often trade inversely with the dollar, as moves in the U.S. unit can influence the attractiveness of those commodities to holders of other currencies.
The GDP data came as investors continue to weigh the timing of a Federal Reserve interest-rate hike. Analysts said the GDP data does little to change expectations.
In other metals trade, July platinum rose $1.90, or 0.2%, to $1,118.20 U.S. an ounce — down around 2% for the month, while September palladium lost 35 cents to $785.25 U.S. an ounce, trading roughly 1% for the month.
July copper fell 1.8 cents, or 0.6%, to $2.75 U.S. a pound, set to lose around 4.7% for the week.
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