Gold sheds more than 5% in May 2013
Bullion metals ended lower at Comex on Friday, 31 May 2013. Gold futures settled below $1,400 on Friday to cap a decline for May, the seventh monthly drop in the last eight months. A strong dollar pushed prices lower. A weaker dollar tends to help the prices of gold and other dollar-denominated commodities by making them cheaper for holders of other currencies.
Gold for August delivery fell $19, or 1.4%, to settle at $1,393 an ounce on the New York Mercantile Exchange's Comex division. Gold futures fell 5.4% in May, compared with the settlement of $1,472.10 for the most-active contract on April 30.
July silver shed 45 cents, or 2%, to close at $22.24 an ounce on Friday, compared to its 1.1% rise on Thursday. Silver lost 8% in May 2013.
On Friday morning, Chicago PMI data rose to a reading of 58.7 in May, the best reading in more than a year, beating expectations of 49.9. Separately, the University of Michigan and Thomson Reuters consumer-sentiment index jumped to a final May reading of 84.5, also rising more than economists had forecast.
Looking at today's remaining economic data reveals a disappointment in the Personal Income and Spending report for April. Income was flat and spending declined 0.2% while the consensus expected both measures to be up 0.1%. Core PCE was also flat compared to a 0.1% increase in March. Personal income for March was revised up to 0.3% from 0.2% while spending was revised down to 0.1% from 0.2%.
The dollar reversed its decline on Friday, with the dollar index rising by 0.5%.
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