Gold Ends A Shade Lower, Soft Data Weighs

(RTTNews) - Gold futures rallied sharply but still ended a tad lower for a fourth straight day on Friday, after a slew of upbeat macroeconomic data earlier in the week pulled down the precious metal. Gold prices had plunged by more than $25 prior to the employment data, but recovered most of the losses after some soft, less-than-expected growth in non-farm payroll employment. For the week, gold prices shed 0.9 percent.

Employment in the U.S. increased less than what economists had expected in July, a Labor Department report showed Friday, although the unemployment rate was still at its lowest in over four years. Meanwhile, new orders for manufactured goods rose less than expected in June, as orders for non-durable goods dropped, partly offsetting a jump in orders for durable goods.

Gold for December delivery, the most actively traded contract, dipped $0.70 to close at $1,310.50 an ounce Friday on the Comex division of the New York Mercantile Exchange.

Gold for December delivery scaled an intraday high of $1,317.60 and a low of $1,283.00 an ounce.

Yesterday, gold settled lower as the dollar strengthened on some upbeat macroeconomic data out of the U.S., led by a better-than-expected initial unemployment claims data. Gold prices initially moved up with no indication from the U.S. Federal Reserve on its plans to taper down the quantitative easing program in the near future.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to 921.05 tons from 927.35 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.92 on Friday, down from 82.35 late Thursday in North American trade. The dollar scaled a high of 82.49 intraday and a low of 81.82.

The euro traded higher against the dollar at $1.3275 on Friday, as compared to $1.3208 late Thursday in North America. The euro scaled a high of $1.3293 intraday and a low of $1.3190.

In economic news from the US, the Labor Department said non-farm payroll employment increased by 162,000 jobs in July following a downwardly revised increase of 188,000 jobs in June. Economists had expected employment to increase by about 175,000 jobs compared to the addition of 195,000 jobs originally reported for the previous month. Despite the weaker than expected job growth, the unemployment rate dipped to 7.4 percent in July from 7.6 percent in June. The unemployment rate had been expected to edge down to 7.5 percent.

Meanwhile, the Commerce Department said personal spending increased by 0.5 percent in June after edging up by 0.2 percent in May. The increase in spending exceeded economist estimates for a 0.4 percent increase. Additionally, the Commerce Department said personal income rose by 0.3 percent in June following a 0.4 percent increase in May. Economists had expected income to increase by 0.4 percent.

With a drop in orders for non-durable goods partly offsetting a jump in orders for durable goods, the U.S. Commerce Department said new orders for manufactured goods rose less than expected in June. Factory orders increased 1.5 percent in June following a revised 3.0 percent increase in May. Economists expected orders to rise by about 2.3 percent.

Elsewhere, eurozone producer prices rose 0.3 percent in June from a year ago, reversing May's 0.2 percent fall, Eurostat reported. The rate matched economists' expectations. The industrial producer price index remained stable on a monthly basis as expected by economists, following a 0.3 percent drop in May.

British house prices recorded their strongest growth in nearly three years in July and the average home value climbed to the highest level in five years. The house price index increased 3.9 percent on an annual basis in July, notably faster than June's 1.9 percent rise, the Nationwide Building Society said Friday.