Gold prices face worst week in month on strong U.S. data

SourceZawya
SectorOil & Gas
CountryMiddle east

Gold prices dipped on Friday, set for their worst week in a month, as U.S. Treasury yields gained on strong economic data and dented the non-yielding metal’s appeal, while palladium came off the record high marked in the previous session.

Spot gold was down 0.1% at $1,770.41 per ounce by 0626 GMT, dropped 0.3% so far in the week. U.S.

gold futures were steady at $1,769.00 per ounce.

Despite the decline, bullion was poised for its first monthly gain of the year.

Data showed late Thursday that U.S. economic growth accelerated in the first quarter as fiscal stimulus fuelled consumer spending.

“This string of consecutively strong U.S. economic data is weighing on gold,” said Stephen Innes, managing partner at SPI Asset Management, adding that people would rather book profits on month-end after a decent run-up in gold.

“Gold still remains bid, it is just not a strong hand right now, because of the month-end rebalancing.”

Benchmark U.S. 10-year Treasury yields hovered near their highest in more than...read more...