NEW YORK/LONDON: Gold prices ended little changed on Friday as better-than-expected data on US consumer sentiment dampened bullion’s appeal as a hedge, while platinum group metals rose on lingering strike worries at South Africa’s state power utility.
Nearly flat US equities and a slightly lower dollar failed to inspire the yellow metal on Friday, when data showed US consumer sentiment rose in June as consumers remained optimistic the sluggish first quarter was due to difficult winter conditions.
With only one trading day left in the second quarter, gold is set to climb nearly three per cent for its second consecutive quarterly gain. The yellow metal’s gain, however, underperformed rises in other precious metals.
Simmering geopolitical tensions over Ukraine and Iraq have boosted gold’s safe-haven appeal so far this year. Still, analysts are bearish on gold’s outlook because of possible dollar strength, an equities rally and tame inflation.
“Should geopolitical tensions ease, gold seems vulnerable to a correction, which is a key reason we expect a return to fundamentals for gold and for prices to fall,” said Christopher Louney, precious metals analyst at Barclays Capital.
Spot gold edged up 0.1 per cent to US$1,318.46 an ounce, hovering near Tuesday’s intraday high of US$1,325.90, its highest level since mid-April.
US COMEX gold futures for August delivery settled up US$3 at US$1,320 an ounce, with trading volume about 25 per cent below their 30-day average, preliminary Reuters data showed.
In terms of quarterly performance, silver was on track for a seven per cent gain in the second quarter, its highest in three quarters. Platinum is poised to rise five per cent for its biggest quarterly gain since the third quarter of 2012, while palladium is set to climb nine per cent.
Gold prices were underpinned as the situation in Iraq remained tense overnight after the most influential Shi’ite cleric in Iraq called on the country’s leaders on Friday to choose a prime minister within the next four days, a dramatic political intervention that could hasten the end of Nuri al-Maliki’s eight year rule. — Reuters