MW: Gold futures reverse to mild loss on the heels of U.S. data
NEW YORK (MarketWatch) -- Gold futures erased early gains Friday, turning lower following U.S. government data showing that retail sales and consumer prices both rose during July.
Gold for December delivery earlier moved up to the $1,218.40-an-ounce level, testing a fresh one-month high, but the contract entered negative territory in the aftermath of the economic data, lately down $1.40 or 0.1% at $1,215.30 an ounce.
The precious metal posted its strongest close in six weeks during the prior session, playing off disappointing data from the Labor Department on weekly jobless claims that added to investor worries about the recovery.
Before the bell Friday, a report showed U.S. retail sales rose 0.4% in July, just less than analyst expectations. Separately, the Labor Department said its consumer price index, tracking inflation at the retail level, grew by 0.3% last month.
Despite the recent decline, gold has largely managed to hold the line above the key $1,200-an-ounce mark.
"In the course of the quite mixed economic data published recently, the interest of investors in safe assets has been noticeably revived," said analysts at Commerzbank.
Gold holdings in exchange-traded products rose for the sixth straight day, adding another 2.9 metric tons on Thursday. SPRE Gold Trust (GLD 118.74, -0.03, -0.03%) , the world's largest gold-backed exchange-traded fund, recorded inflows of 0.9 of a metric ton.
