Gold Ends Lower On Strong Dollar; Sheds 4.1% For Week

(RTTNews) - Gold futures ended at a fresh five-year low on Friday, as the dollar strengthened against some major currencies with continued investor concerns over the timing of the imminent Federal Reserve interest rate hike this year.

For the week, gold futures shed about 4.1 percent.

The precious metal was also impacted after some disappointing economic data with new home sales in the U.S. unexpectedly pulling back in June, with sales falling to their lowest level in seven months, a Commerce Department release said on Friday.

The report said new home sales tumbled 6.8 percent to an annual rate of 482,000 in June from the downwardly revised May rate of 517,000. The steep drop came as a surprise to economists, who had expected new home sales to edge up to 550,000 from the 546,000 originally reported for the previous month.

Gold also tracked some crucial economic data from China, with the country's manufacturing sector contracting at an accelerated pace once again in July, a survey from Caixin revealed on Friday.

Gold prices is mired in its worst slump since 1996. Prices have fallen to their lowest in more than five years as the dollar continues to strengthen on expectations the Federal Reserve will soon raise interest rates.

Gold for August delivery, the most actively traded contract, fell $8.60 or 0.8 percent, to settle at $1,085.50 an ounce, on the Comex division of the New York Mercantile Exchange on Friday.

Gold for August delivery scaled an intraday high of $1,090.60 and a low of $1,072.30 an ounce.

On Thursday, gold prices gained $2.60 or 0.2 percent, to settle at $1,094.10 an ounce, snapping a 10-day losing streak as the dollar weakened and bargain hunters swooping in after the precious metal's the longest losing streak in two decades.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, edged down to 684.63 tons on Friday, from its previous close of 687.31 tons on Thursday.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 97.28 on Friday, up from its previous close of 97.20 in late North American trade on Thursday. The dollar scaled a high of 97.62 intraday and a low of 97.12.

The euro trended lower against the dollar at $1.0978 on Friday, as compared to its previous close of $1.0985 in North American trade late Thursday. The euro scaled a high of $1.0997 intraday and a low of $1.0927.

On the economic front, new home sales in the U.S. unexpectedly pulled back in June, with sales falling to their lowest level in seven months, a Commerce Department report said Friday. New home sales tumbled 6.8 percent to an annual rate of 482,000 in June from the downwardly revised May rate of 517,000. Economists expected sales to edge up to 550,000 from the 546,000 originally reported for the previous month.

China's manufacturing sector contracted again in July and at an accelerated pace, a survey from Caixin revealed on Friday, with a flash PMI score of 48.2. That marked a 15-month low score, and was well shy of a forecast for 49.7.

Eurozone consumer confidence deteriorated at a faster-than-expected pace for a fourth straight month in July, preliminary estimates from the European Commission showed Thursday. The flash consumer confidence index dropped to -7.1 from -5.6 in June. Economists had forecast a score of -5.8.

Despite uncertain developments in Greece, Eurozone economic growth slowed only slightly in July as private sector activity rose at one of the strongest pace seen over the last four years, flash survey data from Markit Economics showed Friday. The Purchasing Managers' Index dropped to 53.7 in July from June's four-year high of 54.2. But it remained slightly above the average seen over the first half of the year. The expected score was 54.

Germany's private sector expanded at a slower pace in July, flash survey data from Markit Economics showed Friday. The flash composite output index dropped to 53.4 in July from 53.7 in June.

The French private sector growth slowed to a three-month low in July, flash survey data from Markit Economics showed Friday, with the composite output index falling to 51.5 in July from June's 46-month high of 53.3.

British households perceive that the value of their home increased in July, a survey from Knight Frank and Markit Economics showed Friday. The house price sentiment index, or HPSI, dropped to 58.6 in July from 59.5 in the previous month.

U.K. mortgage approvals increased for the sixth straight month to a 15-month high in June and came in above economist expectations, data from the British Bankers' Association showed Friday. The number of mortgage approvals rose to a seasonally adjusted 44,488 in June from 42,876 in April. It was forecast to rise to 43,300. The latest figure was the highest since March 2014, when approvals totaled 45,574.