Gold Rebounds To Ends Higher, But Sheds 0.5% For Week

(RTTNews) - Gold futures snapped a three-day loss to end higher on Friday, tracking some largely declining global equity markets with investors seeking the precious metal's safe haven appeal, even as the situation in Ukraine continued to escalate.

Although weak global equity markets and short-covering after three days of decline appear to be lifting the yellow metal, Thursday's upbeat U.S. jobs data is limiting gold's upside.

Gold futures shed about 0.5 percent for the week.

Unrest in Ukraine continued with reports indicating that shells fired by government forces hit Russian territory on Friday. Ukraine has alleged that Russia is planning to deliver powerful rocket launchers to separatist forces in Ukraine.

Gold for August delivery, the most actively traded contract, added $12.50 or 1.0 percent to close at $1,303.30 an ounce on the Comex division of the New York Mercantile Exchange on Friday.

Gold for August delivery scaled an intraday high of $1,303.20 and a low of $1,291.00 an ounce.

On Thursday, gold futures ended sharply lower, extending losses to a third successive session with investors turning to riskier assets on some strong corporate earnings reports and upbeat jobless claims data.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, edged down to 801.84 tons on Friday, from its previous close of 805.44 tons on Thursday.

The dollar index, which tracks the U.S. unit against six major currencies, traded at 81.04 on Friday, up from its previous close of 80.87 late Thursday in North American trade. The dollar scaled a high of 81.08 intraday and a low of 80.80.

The euro traded lower against the dollar at $1.3431 on Friday, as compared to its previous close of $1.3464 late Thursday in North American trade. The euro scaled a high of $1.3475 intraday and a low of $1.3422.

In economic news from the U.S., orders for durable goods were up 0.7 percent in June, the Commerce Department said. Economists expected durable goods order growth of 0.5 percent month-over-month. Excluding transportation, orders rose 0.8 percent in June, beating expectations for a 0.7 percent increase.

British economic growth remained high as expected in the second quarter with robust expansion in the dominant service sector, and industry completely offset slight weakness in the construction sector. With the second quarter expansion, GDP returned to its pre-crisis level.

Britain's gross domestic product grew 0.8 percent sequentially in the second quarter, the same rate as seen in the first three months of the year, preliminary data published by the Office for National Statistics showed Friday. This was in line with economists' expectations.

German business confidence eased for the third successive month to its lowest level since October, amid rising concerns over the impact of the conflicts in Ukraine and the Middle East on the largest eurozone economy.

The Business Climate Index for industry and trade dropped to 108.0 points in July from 109.7 in June, a survey by the Munich-based Ifo Institute showed Friday. The fall was worse than the expected decline of 109.4, and the lowest since October last year that read 107.5.