Gold was extending losses Friday morning after the Federal Reserve failed to hint on any specific plans for further monetary stimulus, disappointing investors.
Gold for August delivery, the most actively traded contract, shed $8.30 to $1,579.70 an ounce. Yesterday, gold dived nearly 3 percent after indications from the Federal Reserve that it may intervene if financial conditions worsen, although without any clarity in the issue. The precious metal earlier found support on a surprise rate cut by China.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, were unchanged at 1,274.79 tons.
This morning, the U.S. dollar was hovering around its two-year high versus the euro and around its weekly high against sterling. The buck was ticking higher versus the Swiss franc, while trading lower against the yen.
In economic news from the euro zone, German exports declined 1.7 percent month-on-month in April after adjusting to seasonal and calendar variations, the Federal Statistical Office said. This was the first decline in exports since December 2011. Economists expected only a 0.7 percent fall in shipments during the month.
A report from the Office for National Statistics revealed U.K. output price inflation eased in May to the lowest since November 2009. Output price inflation fell to 2.8 percent in May from 3.2 percent in April. The annual rate was expected to stay at 3.2 percent.
The prices of silver and platinum were moving lower in morning deals.
From the U.S., the trade gap data for April is due out at 8:30 am ET. Economists estimate that the trade gap narrowed to $49.3 billion from $51.8 billion in the previous month.
Later during the session, the Commerce Department is due to release its wholesale inventories report. Economists expect wholesale inventories at the end of April to show a 0.5 percent increase a compared to 0.3 percent growth in March.
by RTT Staff Writer
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