Gold Ends Higher On Soft Data; Up 0.4% For Week

(RTTNews) - Gold futures ended higher for a second straight session on Friday, after some soft data from the U.S. with consumer sentiment in January dropping unexpectedly and housing starts pulling back in December, even as the dollar trended higher against a basket of major currencies.

For the week, gold prices gained about 0.4 percent.

Economic data from the U.S. showed consumer sentiment to have unexpectedly deteriorated in January, reflecting lower expectations among lower and middle-income families, a report from Thomson Reuters and the University of Michigan said Friday.

Meanwhile, housing starts in the U.S. pulled back in December, after reporting a substantial increase in new residential construction in the previous month, according to a Commerce Department report. The drop is attributed to the surge in housing starts in the previous month and the winter storms in December.

Nevertheless, industrial production in the U.S rose in line with estimates in December, with increases in manufacturing and mining production offsetting a pullback in utilities output.

Gold for February delivery, the most actively traded contract, gained $11.70 or 0.9 percent to close at $1,251.90 an ounce Friday on the Comex division of the New York Mercantile Exchange.

Gold for February delivery scaled an intraday high of $1,254.60 and a low of $1,237.30 an ounce.

Gold settled higher yesterday, with investors opting for the precious metal after global equity markets trended lower on some soft inflation and initial unemployment benefit claims data from the U.S.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, remained unchanged at 789.56 tons.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.27 on Friday, up from its previous close of 80.92 late Thursday in North American trade. The dollar scaled a high of 81.30 intraday and a low of 80.91.

The euro traded lower against the dollar at $1.3523 on Friday, as compared to its previous close of $1.3620 late Thursday in North America. The euro scaled a high of $1.3621 intraday and a low of $1.3518.

In economic news, consumer sentiment in the U.S. unexpectedly deteriorated in January, a report from Thomson Reuters and the University of Michigan said Friday. The consumer sentiment index dropped to 80.4 in January from 82.5 in December. Economists expected the index to climb to 83.5. The decrease was attributed to lowered expectations among lower- and middle-income families.

U.S. housing starts pulled back in December after reporting a substantial increase in new residential construction in the previous month, a Commerce Department report showed Friday. Housing starts fell 9.8 percent to an annual rate of 999,000 in December after jumping 23.1 percent to the revised November estimate of 1.107 million. Economists expected housing starts to drop to an annual rate of 985,000 from the 1.091 million originally reported for the previous month, reflecting a 9.7 percent decrease.

Meanwhile, building permits fell 3.0 percent to an annual rate of 986,000 in December from the revised November rate of 1.017 million. Building permits, an indicator of future housing demand, had been expected to show a more modest 1.015 million decrease.

Industrial production in the U.S rose in line with economist estimates in December, with increases in manufacturing and mining production offsetting a pullback in utilities output, a Federal Reserve report showed Friday. Industrial production increased 0.3 percent in December after jumping by a revised 1.0 percent in November. The increase was in line with economist estimates, while the previous month's growth was downwardly revised from 1.1 percent.