The prices of gold inched down in session on Friday, but still finished the week broadly higher, as a wave of mixed economic data anticipated little indication of whether the Federal Reserve will raise short-term of interest rates in September.
In futures trading on the Comex division of the New York, gold December delivery traded in a tight range between $1,111.50 and $1,120.40 a troy ounce. Meanwhile, in Singapore gold traded 0.1% lower at $1,113.02 an ounce.
The Department of Labor, Bureau of Labor Statistics of the United States (BLS) said Friday its index of producer prices of final demand (FD PPI) increased by 0.2 in July, an increase trade in services drove wholesale prices up moderately. Analysts had forecast rose by 0.1 in the consolidated record for the month. Despite monthly earnings, the index remained to be 0.8 on a year by year basis.
The core PPI-FD, which excludes for food and energy prices, marked by 0.3 in July even though the annual growth slowed. In the month of July, the reading rose by 0.6, below a significant increase from 0.8 the previous month. The data do not represent the continued decline in oil prices during the first two weeks of August.
Moreover, the monthly index of the Federal Reserve’s industrial production increased 0.6% in July on the back of a 10.6% increase in the production of motor vehicles. Economists forecast growth of 0.4% in the month. In addition, manufacturing increased 0.8% in the month above forecasts of analysts of a gain of 0.4%.
Moreover, the University of Michigan Consumer Survey Center said consumer confidence in the first half of August remained practically unchanged since final reading in July. University of Michigan consumer sentiment index for mid-August was placed in 92.9, above estimates of 92.5, but below the level of the final July 93.1. Within the index, the expectations component dropped 0.3 to 83.8 – a level still considered quite strong following significant profits earlier in the summer. The component provides an insight on the prospects for long-term employment in the nation.
Market observers said the drop in gold futures is primarily attributable to cuts in positions of speculators, tracking a weak tendency overseas because investors turned their focus back to the timing of rising US of interest rates after China pointed out supporting its currency.
Meanwhile, at Multi Commodity Exchange, gold prices for delivery in October fell Rs 70, or 0.27%, to Rs 25,825 per 10 grams.
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