Gold futures settle higher but post more than 1.65 percent weekly loss

Gold futures on the COMEX division of the New York Mercantile Exchange rose slightly on Friday, but posted more than 1.6 percent weekly loss.

The most active gold contract for June delivery rose 1.5 U.S. dollars, or 0.12 percent, to settle at 1,272.70 dollars per ounce. For the week, gold declined 1.65 percent, the first weekly loss since April 22.

The precious metal was given support as U.S. equities showed extensive weakness. The U.S. Dow Jones Industrial Average fell by 145 points, or 0.82 percent as of 17:50 GMT. The Analysts noted that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

Gold was put under pressure as the U.S. Department of Labor released the producer price index (PPI) report on Friday showing as-expected inflationary movement. The PPI increased by 0.2 percent during the month of April, according to the report.

The precious metal was put under further pressure as the retail sales report released by the U.S. Department of Commerce on Friday showed consumer spending better-than-expected, increasing by 1.3 percent. Analysts noted that the strength was led by in auto sales, which increased by 3.2 percent.

Silver for July delivery rose 2.90 cents, or 0.17 percent, to close at 17.132 dollars per ounce. Platinum for July delivery fell 1.90 dollars, or 0.18 percent, to close at 1,052.10 dollars per ounce. Endit