The price of gold was little changed Friday morning, with the U.S. dollar recovering from its recent losses as traders await fresh catalysts.
Gold for August delivery, the most actively traded contract, eased $0.70 to $1,411.30 an ounce. Yesterday, gold settled higher for a second straight session at a two-week high, as the dollar weakened against a basket of major currencies after some weak macroeconomic data out of the U.S. with initial jobless claims rising more than expected. In some soft economic news, first-time claims for U.S. unemployment benefits in the previous week moved back to the upside in the week ended May 25, while pending home sales in the U.S. increased much less than expected in April. Meanwhile, U.S. economic activity in the first three months of 2013 grew slightly less than previously estimated, a Commerce Department report showed Thursday.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,013.15 tons.
Meanwhile, the U.S. dollar was recovering from its three-week low versus the euro and moved back toward a two-week high against sterling. The buck continued to linger around its three-week low versus the Swiss franc, while steady near its 4-year high versus the yen.
In economic news, euro zone annual inflation accelerated in May for the first time in nine months, preliminary data from Eurostat showed. Inflation rose to 1.4 percent from April's 1.2 percent, in line with economists' expectations. The figure climbed for the first time since August last year, when it was 2.6 percent. The European Central Bank targets inflation "below, but close to 2 percent".
German retail sales grew for the first time in three months in April, the latest figures from the Federal Statistical Office showed. Sales rose 1.8 percent year-on-year in April compared with forecast of 1.1 percent growth. This followed a 2.5 percent drop in March and a 2.8 percent fall in February.
British consumer confidence improved more than expected to a six-month high in May as households remained upbeat about their personal finances as well as the overall economic situation, a survey by GfK NOP showed. The consumer confidence index climbed to minus 22 in May from minus 27 in April, while economists had forecast a reading of minus 26.
Elsewhere, the prices of silver and platinum were moving lower in morning deals.
From the U.S., the Commerce Department will release its personal income and spending report for April at 8:30 am ET. Economists expect personal income growth of 0.1 percent month-over-month, while personal spending is expected to have remained unchanged.
