The price of gold slipped below the $1,400-mark Friday morning with the US dollar trading firm as geopolitical tensions in Syria eased. Also, better-than-expected second-quarter US GDP growth reading weighed on gold prices.
Gold for December delivery, the most actively traded contract, shed $17.50 to $1,395.40 an ounce. Yesterday, gold settled lower as investors opted for the riskier equity assets globally with the precious metal losing much of its safe haven appeal and the dollar strengthening against a basket of major currencies after concerns over a military strike by the U.S. and its allies eased. Gold also found little support after some encouraging macroeconomic data out of the U.S. saw jobless claims at a six-year low and the economy growing at a much faster rate than previously estimated in the second quarter
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 921.03 tons.
Meanwhile, the U.S. dollar was hovering near its 2-week high versus the euro, sterling and the Swiss franc, while ticking lower against the yen.
In economic news from the euro zone, Germany's retail sales fell unexpectedly in July, the latest figures published by the Federal Statistical Office revealed. Sales dropped 1.4 percent month-on-month on a calender and seasonally adjusted basis in July against expectations for a 0.6 percent increase.
Euro zone economic confidence improved for the fourth consecutive month in August, survey data from the European Commission showed. The corresponding index climbed to 95.2 from 92.5 in July. The reading was above the consensus 93.8.
Unemployment rate in Euro zone held steady at record 12.1 percent in July, in line with forecasts, data from the Eurostat showed. The jobless rate has remained at this level for the fourth consecutive month. According to Eurostat estimates, 19.231 million people were unemployed in euro area in July. Compared with June, unemployment decreased by 15,000, but rose by 1.008 million year-on-year.
Elsewhere, the prices of silver and platinum were trading lower in morning deals.
From the U.S., the Commerce Department will release its personal income and spending report for July at 8:30 a.m ET. Economists expect personal income growth of 0.2 percent from the previous month in July, while personal spending is expected to have climbed by 0.3 percent
