Gold Futures Settle Higher On Weak Dollar, Consumer Sentiment Data
Gold prices rose sharply on Friday after the dollar drifted lower following data showing a drop in U.S. consumer sentiment in the month of August.
The surge in the delta variant of the coronavirus and fresh restrictions in several places across the world raised uncertainty about a rapid economic rebound from the pandemic.
A drop in U.S. treasury yields contributed as well to the yellow metal’s uptick.
The yield on U.S. 10-year Treasury Notes dropped to around 1.314%, sliding from about 1.37%.
The dollar index dropped to 92.47, losing more than 0.6% from the previous close.
Gold futures for December ended up by $26.40 or about 1.5% at $1,778.20 an ounce. Gold futures gained about 0.9% in the week.
Silver futures for September ended higher by $0.663 or 2.9% at $23.779 an ounce, while Copper futures for September settled at $4.3915 per pound, gaining $0.0315 or about 0.7%.
The University of Michigan’s preliminary report said U.S. consumer sentiment slumped to 70.2 in August 2021, from 81.2 in the previous month and well below market expectations of 81.2. It was the lowest reading since December 2011,
Data from the Labor Department showed U.S. import prices rose by 0.3% in July after surging up by a revised 1.1% in June. Economists had expected import prices to climb by 0.6% in July compared to the 1% jump originally reported for the previous month.
Meanwhile, the Labor Department said export prices shot up by 1.3% in July following a 1.2% leap in the previous month. Export prices were expected to increase by 0.8%.
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