TH: Gold prices slide as safe-haven demand withers
Gold prices lost more ground Friday as other markets were buoyed by increasing optimism about the economy. Other commodities, like oil and silver, were higher.
On Friday, stocks managed to finish modestly higher after wavering throughout much of the session on mixed economic data and corporate earnings reports.
A private group reported that a contraction in the manufacturing sector is slowing, but the government reported that orders to U.S. factories fell more than expected in March.
Gold has had difficulty sustaining prices above the $900 mark as investors become more confident that the economy is improving.
Risk appetite has increased on Wall Street, putting pressure on the precious metal, which is considered a safe-haven investment.
Gold's decline on Friday was truncated by a weaker dollar.
Investors tend to flock to the precious metal as a hedge against inflation when the greenback is down. Inflation can be triggered by a weak dollar.
Gold for June delivery dipped $3 to settle at $888.2 an ounce on the New York Mercantile Exchange.
The precious metal lost 2.8 percent for the week.
July silver jumped 17.5 cents to $12.50 an ounce, while July copper futures added 5.35 cents to $2.1010 a pound.
On Wall Street, the Dow Jones industrial average rose 44 points, extending big gains logged in April that drove the market to its best one-month advance in nine years.
Oil prices jumped above $53 a barrel on the Nymex Friday, boosted by the manufacturing data.
Manufacturers are big consumers of energy. Recent layoffs and factory shutdowns have resulted in huge stockpiles of unused crude, sending prices down to about half of what they were last summer.
Light, sweet crude for June delivery rose $2.08 to settle at $53.20 a barrel.
In other Nymex trading, gasoline for June delivery rose 5.16 cents to $1.5174 a gallon, while heating oil for June delivery rose 5.16 cents to $1.3884 a gallon.
Grain prices surged on the Chicago Board of Trade.
July wheat futures rallied 33.5 cents to $5.70 a bushel, while corn for July delivery rose 10.25 cents to $4.1375 a bushel.
