Gold futures rose Friday, extending weekly gains amid a flurry of downbeat economic news.
August gold gained $10.20, or 0.8%, to settle at $1,227.50/oz. Gold added 1.6 percent for the week, moving away from 4-month lows. Silver was up nearly 3 percent.
Consumer prices in the U.S. came in unchanged in the month of June, denting expectations the Federal Reserve will again raise interest rates this year.
The Labor Department said its consumer price index was flat in June after edging down by 0.1 percent in May. Economists had expected consumer prices to inch up by 0.1 percent.
Paul Ashworth, Chief U.S. Economist at Capital Economics, said, “Earlier this week, Chair Janet Yellen reiterated that the Fed would be watching the incoming inflation data particularly closely over the coming months.”
“On the basis of June’s data, it is getting harder for the Fed to continue claiming that this is a temporary drop off,” he added.
U.S. retail sales unexpectedly decreased for the second consecutive month in June. The Commerce Department said retail sales fell by 0.2 percent in June after edging down by a revised 0.1 percent in May.
The University of Michigan released a report on Friday showing a notable deterioration in U.S. consumer sentiment in the month of July.
The preliminary report said the consumer sentiment index dropped to 93.1 in July from the final June reading of 95.1. Economists had expected the index to edge down to 95.0.
The material has been provided by InstaForex Company – www.instaforex.com
Source: Forex News