SAN FRANCISCO (MarketWatch) -- Gold futures turned lower Friday after a rash of macroeconomic data painted an improved economic picture and U.S. Federal Reserve Chairman Ben Bernanke called for cautious monetary easing.
Gold for December delivery (GCZ10 1,369, -9.00, -0.65%) retreated $2.80, or 0.2%, to $1,374.50 an ounce on the Comex division of the New York Mercantile Exchange. It spiked to an intraday high of $1,386.40 just before floor trading opened, but retreated after the morning data.
Gold closed at a record high Thursday, settling at $1,377.60, its 16th record in little more than five weeks.
Expectations of quantitative easing have weakened the dollar and pushed investors to gold as a means of protecting their wealth. On Friday, Bernanke recognized the need for further action but urged caution to make use of the new policy tool.
Earlier in the day, investors grappled with a larger-than-expected rise in retail sales in September. Retail sales climb 0.6%
Separately, the Labor Department reported a rise of 0.1% for consumer prices. The core consumer price index was flat. Economists have been concerned about the low level of inflation. Consumer prices edge higher
Silver, however, kept its rally intact and posted a fresh 30-year high of Friday. Copper was also trading at a multiyear high.
December silver (SIZ10 2,427, -16.50, -0.68%) added 7 cents, or 0.3%, to $24.50 an ounce.
Copper for December delivery (HGZ10 383.00, +1.45, +0.38%) advanced 2 cents, or 0.6%, to $3.84 a pound. A settlement along these lines would be copper’s best since July 2008.
