The price of gold was little changed Friday morning as the U.S. dollar was trading mixed, with the euro turning strong following comments from German Chancellor Angela Merkel that the European Central Bank's approach to defend the euro is in line with the ideology of the politicians in the region.
Gold for December delivery, the most actively traded contract, inched down $0.10 to $1,619.10 an ounce. Yesterday, gold extended gains for a second session as investor appetite for riskier assets improved after some positive economic data from the U.S. earlier in the week and as well supported by a weak dollar.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved up to 1,263.58 tons from 1,258.15 tons.
Meanwhile, the U.S. dollar was leveling off from its two-week high versus the euro and ticking higher against sterling. The buck advanced to a 5-week high versus the yen, while continuing to ease against the Swiss franc.
In economic news, euro zone's foreign trade surplus increased in June, the latest figures published by Eurostat showed. The trade surplus rose to EUR 14.9 billion in June from EUR 7.1 billion in May. A year ago, the balance was in a surplus of EUR 0.2 billion.
Earlier today, data from the Federal Statistics Office revealed German producer price inflation eased to 0.9 percent in July from 1.6 percent in June. Economists expected the rate to eased to 1.2 percent. A year ago, the rate of inflation was 2.1 percent.
The price of silver was ticking lower and platinum moved up in morning deals.
From the U.S., the preliminary report on consumer sentiment survey for August by Reuters and the University of Michigan is scheduled to be released at 9.55 am ET. The consumer sentiment index is expected to have edged down to 72 from 72.3 in the previous month.
by RTT Staff Writer
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