Gold Ends Lower On Upbeat Data, Despite Weak Dollar

(RTTNews) - Gold futures ended lower for a third straight session on Friday, on some upbeat economic data from the U.S. with the Thomson Reuters and the University of Michigan consumer sentiment index rising more than expected in December.

Nevertheless, the losses were limited as the dollar weakened against some major currencies and global equity markets declined. In some encouraging economic news, a Thomson Reuters and the University of Michigan report showed U.S. consumer sentiment index to have jumped to a near eight-year high in December, the highest level since January 2007.

Investors continued to mull over some robust retail sales data released yesterday, which showed a more than expected increase in November, signaling some significant overall economic uptick.

Gold for February delivery, the most actively traded contract, dropped $3.10 or 0.3 percent to settle at $1,222.50 an ounce on the Comex division of the New York Mercantile Exchange on Friday.

Gold for February delivery scaled an intraday high of $1,228.90 and a low of $1,214.80 an ounce.

On Thursday, gold futures ended at $1,225.6 an ounce, down $3.80 or 0.3 percent, weighed down by a strong dollar on the back of some encouraging reports on U.S. retail sales and unemployment claims, with global equity markets firming.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, edged higher to 725.75 tons on Friday, from its previous close of 724.80 tons on Thursday.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 88.32 on Friday, down from its previous close of 88.55 late Thursday in North American trade. The dollar scaled a high of 88.64 intraday and a low of 88.11.

The euro trended higher against the dollar at $1.2455 on Friday, as compared to its previous close of $1.2413 late Thursday in North American trade. The euro scaled a high of $1.2486 intraday and a low of $1.2385.

In economic news, data from the U.S. Labor Department showed producer prices to have declined 0.2 percent in November. Economists expected the index to decline 0.1 percent month-over-month in November.

A Thomson Reuters and the University of Michigan report showed the preliminary reading on the consumer sentiment index for December at 93.8, compared to the final November reading of 88.8. Economists expected the index to show a more modest increase of 89.5.

A report from China's National Bureau of Statistics showed industrial production to have advanced 7.2 percent in November from last year. This was the weakest growth in three months and slower than the 7.7 percent increase seen in October and 7.5 percent growth forecast by economists.

In economic news from eurozone, data from Eurostat showed eurozone industrial output to have edged up by a less than expected 0.1 percent October, after a revised 0.5 percent increase in the preceding month.

Elsewhere in Europe, the leading economic index in the UK declined for a second straight month in October, the Conference Board said Friday. The leading economic index dropped 0.3 percent in October, same as in the previous month, which was revised from 0.4 percent. In August, the index climbed 0.4 percent.