By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) — Gold futures rose on Friday, but pared gains as the dollar pushed forward in the wake of better-than-expected U.S. economic growth data.
Growth in the second quarter tapered off to 1.5% in the U.S. from 2% in the prior quarter, data showed. That was better than the 1.3% rise that economists polled by MarketWatch had been expecting.
Gold for August delivery GCQ2 +0.29% halved gains seen ahead of the data and was last up $3.10 to $1,618.20 an ounce on the New York Mercantile Exchange.
The contract gained $7 to $1,615.10 an ounce on Thursday after European Central Bank President Mario Draghi vowed to do “whatever it takes” to preserve the euro.
European markets and the euro got a boost Friday after French daily Le Monde reported the ECB and euro-zone governments would be buying Spanish and Italian debt.
But on the heels of the U.S. GDP data, the euro pared back gains. The euro EURUSD +0.1341% fell to $1.2273 from $1.2284 late Thursday.
A weaker dollar tends to bolster gold and other dollar-denominated commodities, while a stronger dollar can have the opposite effect.
Other metals futures also pared back gains. September silver SIU2 +0.29% rose 4 cents to $27.50 an ounce. Copper for September delivery HGU2 +0.44% rose 2 cents, or 0.4%, to $3.41 a pound.
Sister metals platinum and palladium also rose. October platinum PLV2 +0.36% rose $5, or 0.4%, to $1,411 an ounce. September palladium PAU2 +0.64% rose $4.20, or 0.7%, to $574.10 an ounce.
Barbara Kollmeyer is an editor for MarketWatch in Madrid.
