Forexpros –
Forexpros – Gold futures moved lower in U.S. trade Friday, threatening to snap a five-session winning streak as data showed an unexpected increase in spending by U.S. consumers and Europe’s plan to settle its debt woes came under scrutiny.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery traded at USD1,738.05 a troy ounce during early U.S. trade, dropping 0.65%, or USD11.25, after hitting a high of USDS1,753.85.
Investors on Thursday wholly welcomed the announcement from European officials as they presented their long-anticipated plan to address the euro-zone debt threat with an expansion of the European Financial Stability Facility to USD1.4 trillion.
The agreement included a vow from private investors to write-down 50% of their holdings in Greek government debt, as well a recapitalization of European banks with assistance from the International Monetary Fund.
Fitch Ratings on Friday, said the plan announced by European leaders was a “positive step” but that the effectiveness of the proposals would depend largely on “greater clarity in the details” and a “full and timely implementation.”
In the U.S., the Bureau of Economic Analysis reported that personal spending rose to a seasonally adjusted 0.6% in September from 0.2% in the previous month, in line with market expectations.
Personal income, however did not keep pace with spending, rising only 0.1% in September, below market expectations of a 0.3% rise. The figures suggest that U.S. consumers were dipping into savings or taking on new debt in order to increase spending.
A higher dollar helped to suppress enthusiasm for gold futures, as a stronger greenback makes gold futures purchases more expensive for holders of other currencies.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.10% to 75.19.
On the Comex, silver for December delivery retreated 0.67% to trade at USD34.89 a troy ounce, while copper for December delivery added 0.21% to trade at USD3.700 a pound.
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