Investing.com -- Gold futures continued to plummet on Friday, extending a significant sell-off one day earlier on a thinly traded session limited by market closures on a three-day weekend.
On the Comex division of the New York Mercantile, gold for June delivery tumbled 11.00 or 0.93% to $1,171.40. Gold peaked above $1,180 to reach a session-high of $1,184.40 in U.S. morning trading before falling again on a choppy day of trading. On Thursday, gold prices plunged more than $30 an ounce amid a batch of stronger than expected U.S. economic data.
Gold ended the week on a three-day slump, falling nearly 3.75% from Tuesday's high of 1,214.90. For the week, though, the precious metal was only down modestly by 0.06% during a volatile stretch of trading. Gold opened the week by shooting up 2.40% on Monday, after two sell-offs late last week.
Metal traders hoping for an indication on the timing of an interest rate hike by the Federal Reserve earlier in the week, received few clues from a guarded Federal Open Market Committee on Wednesday in an ambiguous rate statement. While a relatively dovish Fed removed all calendar references on a potential rate hike from its monetary policy, it still has not ruled out June for a lift-off date. On Friday, Federal Reserve of Cleveland president Loretta Mester said June is still "on the table" for a rate increase.
Gold likely gained support at 1,149, the low from Mar. 17 and met resistance at 1,186.90, the high from April 22. The precious metal, which is not attached to interest rates or dividends, struggles to compete with high yield bearing assets in periods of rising rates.
The majority of markets in Asia, including China were closed on Friday for the May Day holiday. China is the world's largest producer and second-largest consumer of gold in the world. Most markets were closed in Europe, as well with the exception of London.
The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six major other currencies, ticked up 0.58 or 0.62% to 95.46, following the release of mixed economic data. The rally ended a seven-session losing streak. For the week, the index fell by 1.62%.
Gold becomes more expensive for foreign purchasers as the dollar appreciates.
U.S. Consumer Sentiment rose slightly for April, as the University of Michigan's Consumer Survey Index gained several points to 95.9, up from a reading of 93.0 in March. The current reading was unchanged from the preliminary reading for the month, but below analysts' forecasts of 96.0. The survey's sub index on current condition increased modestly to 107, up from a prior reading of 105.
Construction spending nationwide, however, dipped by 0.6% in March – below expectations of a 0.4% gain. Markit's PMI manufacturing flash index also fell to 54.1, down from 55.7 in March. The index was pushed down by weakness in U.S. exports, which contracted for the first time since November. The Institute for Supply Management, meanwhile, said its national factory activity index was at 51.5 for April, remaining unchanged from a month earlier.
Elsewhere, silver for July delivery fell 0.115 or 0.67% to 16.038 an ounce.
Copper for July delivery gained 0.039 or 1.34% to 2.925 a pound.