Gold futures rose Friday, boosted by the euro's record high against the dollar after data showed that the US economy slowed to 1.3% real annualized growth in the Q1, the weakest expansion in four years.
Gold for June delivery gained $2 to $680 an ounce on the New York Mercantile Exchange. Hit by rising energy prices and a weak housing market, the US economy slowed to 1.3% real annualized growth in the Q1, below the 1.7% expected economists polled by MarketWatch Following the news, the dollar fell to a record low against the euro, which traded above $1.3680. The previous record for the euro was $1.3666, reached in December 2004. See Currencies. „Today's GDP reading will be the likely key to short-term direction,” said James Moore, metals analyst at TheBullionDesk.com. Indications of slowing growth will pressure the dollar and trigger a rebound in gold, he said.
On Thursday, gold futures closed down $9.40, or 1.4%, at $678 an ounce, their weakest closing level since April 9. „Despite the corrections yesterday, gold is still looking poor on the charts and may have to weather further weakness before stabilizing, particularly as further institutional sales are expected,” Moore said. Crude-oil futures extended their losses early Friday, while natural gas also continued to fall a day after a modest build in weekly inventory data and moderating temperatures combined to push the contract down 2%. Crude for June delivery fell 39 cents at $64.67 a barrel in electronic trade. See Futures Movers. (marketwatch.com)