By Claudia Assis and Sarah Turner, MarketWatch
SAN FRANCISCO (MarketWatch) — Gold futures posted gains Friday, rising for the first in four sessions and getting some support from a pullback in the U.S. dollar and after data showed China’s economy slowed in line with expectations in the second quarter.
Gold for August delivery GCQ2 +1.85% climbed $27.70, or 1.8%, to $1,593.60 an ounce on the Comex division of the New York Mercantile Exchange on Friday. On the week, gold rose 0.9%.
China’s economy grew at its slowest pace in more than three years in the second quarter, with gross domestic product expanding at an annual rate of 7.6% versus 8.1% in the first three months of the year.
The figure was in line with economists’ forecasts, and it came as a relief as many market participants had been bracing for worse numbers.
Gold futures on Thursday fell $10.40, or 0.7%, to settle at $1,565.30 an ounce in regular New York trading on Thursday.
The precious metal saw some selling this week after minutes of the Federal Reserve’s latest interest rate setting meeting didn’t send strong signals that the U.S. central bank is set to embark on another round of monetary easing.
A stronger dollar also weighed on the precious metal for most of this week, but the ICE dollar index DXY -0.33% turned lower on Friday.
The index recently reached 83.376, retreating from 83.666 in late North American trading on Thursday.
While gold may see some gains for the time being, “we do not believe gold will be able to mount a convincing rally until high demand for U.S. Treasuries moderates and the euro steadies,” said in a note to clients HSBC metal analyst James Steel.
Across the wider metals complex, September silver SIQ2 +1.08% futures rose 32 cents, or 1.2%, to $27.49 an ounce.
September copper HGU2 +2.47% added 8 cents, or 2.3%, to $3.49 a pound.
“Short-covering has taken the metals higher following Chinese GDP data that came in line with expectations and helping to allay the market’s worst fears,” analysts with Barclays said in a research report. “In particular, what could prove more positive for the base metals is the investment spending component, which if it remains strong could prove a boon for consumption later in the year.”
China is a top consumer of copper.
October platinum PLV2 +1.48% gained $21.60, or 1.5%, to $1,434.10 an ounce, while September palladium PAU2 +1.68% rose $10.30, or 1.8%, to $585.05 an ounce.
Claudia Assis is a San Francisco-based reporter for MarketWatch.
Sarah Turner is MarketWatch's bureau chief in Sydney.
