Investing.com - Gold prices were holding close to five-week highs on Thursday after jumping higher in the previous session when U.S. economic data indicated that the Federal Reserve may delay rate hikes until the economy is on a stronger footing.
Gold futures for June delivery were at $1,215.0 a troy ounce, not far from Wednesday’s five-week highs of $1,218.5. The precious metal ended that session up 2.16%.
The dollar weakened against the other major currencies after data on Wednesday showed that U.S. retail sales were flat in April and import prices were lower for a tenth straight month.
The data underlined expectations that the Federal Reserve will delay hiking rates until later in the year, after recent figures showed that the U.S. economy expanded just 0.2% in the first quarter.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was close to three-month lows at 93.32.
Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.
Meanwhile, an industry report released on Thursday showed that global gold demand decreased 1% in the first three months of the year as growth in Indian jewelry buying failed to completely offset declining Chinese demand.
The World Gold Council report also said that first quarter was the first time since 2012 that gold demand by exchange traded funds showed net buying, totaling 25.7 tones.
Elsewhere in metals trading, silver for July delivery eased 0.31% to $17.16 a troy ounce, still near the high of $17.24 set on Wednesday, while copper for July delivery was down 0.48% to $2.915 a pound.
