Credit: Investing.com -
Investing.com - Gold prices rose on Friday, easing off two-week lows hit after upbeat U.S. jobless claims data and the Federal Reserve's most recent policy statement, while investors eyed the release of additional U.S. economic reports due later in the day.
On the Comex division of the New York Mercantile Exchange, gold futures for April delivery were up 0.46% to $1,262.10.
The April contract ended Thursday's session 2.43% lower at $1,255.90 an ounce.
Gold futures dropped after the U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits decreased by 43,000 to 265,000 last week. Analysts had expected initial jobless claims to decline by 8,000 to 300,000 last week.
The upbeat data added to optimism over the strength of the economy and fuelled expectations that the Federal Reserve will begin to raise rates sooner than previously thought.
The U.S. central bank upgraded its assessment of the economy and the labor market on Wednesday, leaving it on track to raise rates in the second half of this year.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was down 0.09% to 94.89, holding below last Friday's more than 11-year highs of 95.77.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Market participants were eyeing preliminary data on fourth quarter growth as well as reports on business activity in the Chicago region and revised data on consumer sentiment, due later in the day, for further indications on the strength of the U.S. economic recovery.
Elsewhere in metals trading, silver for March delivery advanced 1.04% to $16.947 a troy ounce, while copper futures for March delivery declined 0.50% to $2.439 a pound.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
