Gold Prices fell as much as 1.1%, after earlier rising 0.8%. Data Friday showed that while the University of Michigan’s final sentiment index dropped to 71.8, the level was higher than the median projection of 68 in a GSR survey of economists.
Investors are “looking for anything to take profit,” Phil Streible, chief market strategist for Blue Line Futures LLC, said by phone. “I just don’t see the economic backdrop having any kind of stability at all. I think this might have been someone blowing out and calling it an early weekend.”
RBC Capital Markets, however, said it would buy bullion on pull-backs, at least until there’s enough momentum to begin to see an unwinding of global “whatever it takes” policies. “That moment will be the real test for gold,” it said.
“The combination of low rates, massive stimulus, and high uncertainty point toward gold allocations rising regardless of whether equity markets improve materially,” though that may not coincide with higher prices.
Gold futures for June delivery declined 0.6% to settle at $1,735.60 an ounce at 1:31 p.m. on the Comex in New York. The metal still posted a 2.2% weekly gain.
