Losses for bullion metals on Friday

Prices gain on weekly basis though

Bullion metals ended lower on Friday, 16 May 2014. Gold fell on Friday as encouraging U.S. housing data weighed on its appeal as a hedge against economic weakness.

Gold for June delivery fell 20 cents to settle at $1,293.40 an ounce on the Comex division of the New York Mercantile Exchange. For the week, it gained roughly 0.5%.

July silver lost 15.5 cents, or 0.8%, to close at $19.33 an ounce. It saw a weekly gain of 1.1%.

The yellow metal came under pressure after government data showed U.S. housing starts jumped in April and building permits hit their highest level in nearly six years, offering hope the troubled housing market could be stabilizing. U.S. economic news on Friday was mixed, but gold prices moved higher shortly after consumer sentiment data, which buoyed the outlook for gold safe-haven demand.

A report on housing starts said they surged in April to hit the fastest growth pace in five months, rising 13.2% to 1.07 million and topping forecasts.

Separately, the preliminary May reading of the University of Michigan and Thomson Reuters consumer sentiment, meanwhile, unexpectedly fell to a reading of 81.8 from 84.1 in April.

Looking forward, a lack of U.S. economic indicators next week could pressure gold and prompt bullion investors to focus on the Federal Open Market Committee meeting on 22 May 2014.

Powered by Capital Market - Live News