U.S. economy grows 2.2% in first quarter, slower than expected
By Polya Lesova, MarketWatch
NEW YORK (MarketWatch) — Gold futures edged higher on Friday, as the dollar fell further against other major currencies after data showed that U.S. economic growth slowed more than expected in the first quarter.
Gold for June delivery GCM2 +0.33% rose $5.90 to $1,666.40 an ounce on the Comex division of the New York Mercantile Exchange. The contract rallied 1.1% Thursday to end at $1,660.50 an ounce, its highest settlement since April 12.
Friday’s gains for the precious metal came as the dollar index DXY -0.51% , which measures the performance of the greenback against a basket of six major currencies, dropped to 78.768, down from 79.138 late Thursday. The euro rallied 0.5% to $1.3252.
Dollar weakness tends to boost dollar-denominated commodities such as gold, because it makes them cheaper for holders of other currencies.
Gold futures extended gains after data showed that the U.S. economy grew at an annual rate of 2.2% in the first quarter of the year, a slowdown from the 3.0% rate recorded in the final three months of 2011.
Economists polled by MarketWatch expected 2.7% growth in the first quarter. Read more about the U.S. economy.
Polya Lesova is MarketWatch's New York deputy bureau chief.
