SAN FRANCISCO (MarketWatch) — Gold futures turned lower Friday, coming off seven-month highs, but remained comfortably on track for standout quarterly gains, their highest since the three months ended June of 2010.
Gold for December delivery (US:GCZ2) lost $2.70, or 0.2%, to $1,777.80 an ounce on the Comex division of the New York Mercantile Exchange.
The metal has gained nearly 11% on the quarter, the best since the second quarter of 2010, when it rose nearly 12%. Monthly gains for gold were also strong, with the metal up more than 5%.
Gold rallied to its best since late February on Thursday amid data pointing to fresh signs of weakness in the U.S. economy and as a weaker dollar helped lure buyers. Read more on Thursday's gold session.
A firmer dollar Friday, however, capped gains on Friday. The ICE dollar index (US:DXY), which measures the greenback against a basket of six other currencies, rose to 79.878 from 79.509 in late Thursday trading in North America.
A stronger greenback makes dollar-denominated gold and other commodities more expensive for holders of other currencies, lessening their investment appeal.
U.S. stocks traded lower, and Wall Street wobbled after mixed data.
On Friday, consumer sentiment rose in September to 78.3 from 74.3 in August, according to reports on the University of Michigan-Thomson Reuters gauge. Economists polled by MarketWatch, however, had expected the index to rise to 79.5. Consumer sentiment highest in four months.
Earlier on the day, the MNI Chicago report said its Chicago-area purchasing managers’ index fell to its lowest settlement in three years, to 49.7 in September from 53 in August.
Gold’s gains for the quarter and month were predicated on concerns about the health of the global economy, and twin fears of currency debasement and inflation following stimulus measures from central banks around the world have helped push gold prices higher.
The broader suite of metals futures held to gains, with silver turning higher and platinum leading the way.
January platinum (US:PLF3), the most active contract, gained $12.90, or 0.8%, to $1,664 an ounce, while sister metal palladium for December delivery (US:PAZ2) added $3.60, or 0.6%, to $639 an ounce.
Copper for December delivery (US:HGZ2) put on 2 cents, or 0.4%, to $3.76 a pound, while silver for the same month (US:SIZ2) rose 2 cents, or 0.1%, to $34.70 an ounce.
Silver has outperformed other metals in the quarter, up more than 25%.
Silver, often said to be gold’s poor cousin, rode two waves on the quarter, both as a precious metal priced lower than the yellow metal, and as an industrial metal set to benefit as the easing measures heat up the global economy.
