Gold Trims Biggest Weekly Drop Since April Before Inflation Data
Bloomberg-Gold advanced to reduce a weekly loss as mixed U.S. economic reports clouded the outlook for when the Federal Reserve will boost interest rates.
Bullion for immediate delivery rose as much as 0.3 percent to $1,208.75 an ounce and was at $1,208.48 by 12:43 p.m. in Singapore according to Bloomberg generic pricing. The metal is set to decline 1.3 percent this week, the most since the period to April 24. Gold in Shanghai dropped.
The metal climbed to a three-month high on Monday before retreating as data showed that while jobless claims fell to a 15-year low, manufacturing remains tepid. Minutes of a Fed meeting signaled borrowing costs won’t be raised in June and growth may pick up after stalling in the first quarter. Inflation figures for April are due on Friday, when Fed Chair Janet Yellen is scheduled to speak.
“We’re all still watching the data,” Victor Thianpiriya, an analyst at Australia & New Zealand Banking Group Ltd., said by phone from Singapore. “It’s still going to be range trading until we get a bit more conviction from the direction of the U.S. dollar.”
Policy makers are monitoring labor market progress as part of their dual mandate, which includes an inflation target. The four-week average for jobless claims decreased to 266,250 in the period ended May 16 from 271,750, according to the Labor Department on Thursday. The Markit Economics preliminary May manufacturing index fell to the lowest since January 2014.