Gold on Friday notched a third-straight winning session, a feat it had not achieved since mid-April, as the dollar drifted lower following slightly weaker-than-expected U.S. retail sales and inflation data.
Gold for June GCM7, +0.20% rose by $3.50, or 0.3%, to settle at $1,227.70 an ounce. It finished the week less than 0.1% higher after posting losses over the previous two weeks.
Prices for the precious metal held on to earlier gains after U.S. data showed that sales at domestic retailers in April came in below market expectations and the core consumer-price index rose by a tamer-than-expected 0.1% last month. Consumer sentiment, meanwhile, jumped to a stronger-than-expected reading of 97.7 in April.
The retail sales and CPI figures helped to push the dollar lower, with the ICE U.S. Dollar Index DXY, -0.27% trading down by 0.4% for the session, but still up about 0.7% for the week.
The sharp rally for the dollar at the start of the week has slowed, helping ease some pressure on gold, while sluggish trading for stocks over the last few sessions has also elevated gold’s haven appeal, at least in the short term.
“Gold remains significantly lower than the 2017 highs after a two-week selloff saw futures fall $80 [an ounce] peak to trough,” said Tyler Richey, co-editor of the Sevens Report.
Gold has been declining in the face of prospects for higher interest rates and as riskier investments, including stocks, remain in favor.
“Very near term, if volatility remains even slightly elevated and interest rates come back in or at least stay flat, gold will likely trend sideways,” Richey said in his latest report. “Longer term, the 2017 uptrend remains intact as long as the $1,200 area holds, but the strength of the trend is much weaker than it was this time last month.”