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Gold futures ended Friday’s session lower, as investors locked in gains following a recent rally as mixed U.S. economic reports eased investors' concerns over a possible near-term end to the Federal Reserve's stimulus program.
Moves in the gold price this year have largely tracked shifting expectations as to whether the U.S. central bank would end its quantitative easing program sooner-than-expected.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery dropped 0.55% on Friday to settle the week at USD1,321.50 a troy ounce.
Gold futures were likely to find support at USD1,295.45 a troy ounce, the low from July 21 and resistance at USD1,375.85, the high from June 19.
On the week, gold prices added 0.69%.
Comex gold prices rose to an almost five-week high of USD1,347.85 a troy ounce on Tuesday, a day after a weaker-than-expected report on U.S. home sales fueled market talk that the Federal Reserve will keep stimulus measures in place for now.
The National Association of Realtors reported earlier that existing home sales fell 1.2% to 5.08 million units in June, missing market calls for sales to rise 0.6% to 5.25 million units in June.
Sales for May were revised down to 5.14 million from a previously reported 5.18 million.
The report added sales were up 15.2% from June of last year, while average house prices jumped 13.5% on a year-over-year basis.
While the numbers indicated that recovery continues in the housing sector, markets concluded the figures were soft enough to sway monetary authorities to keep stimulus programs in place for now.
Fed officials have said they will pay close attention to economic data when deciding when to taper and eventually close stimulus programs.
An exit from the stimulus would deal a heavy blow to gold, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies.
In the week ahead, the Fed is to release its monthly monetary policy statement, which will be closely watched for indications on the future of the central bank's stimulus program.
Elsewhere on the Comex, silver for September delivery dropped 0.91% on Friday to settle the week at USD19.97 a troy ounce. Despite Friday's losses, silver future prices gained 0.78% on the week.
Meanwhile, copper for September delivery tumbled 2.54% on Friday to close the week at USD3.105 a pound.
The red metal lost ground as traders cashed out of the market to lock in gains following Monday’s strong rally that took prices to a five-week high .
Losses were limited however, amid hopes policy makers in China will introduce fresh easing measures to boost growth in the world’s second largest economy and largest consumer of the industrial metal.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Comex copper prices declined 1.86% on the week. - investing.com
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