Investing.com - Gold prices rose on Friday as the dollar slid against the other major currencies following the release of lackluster U.S. economic reports.
Gold for June delivery on the Comex division of the New York Mercantile Exchange settled at $1,235.7 a troy ounce, up 0.75%.
The precious metal ended the week down 0.86%, reversing all its early gains after hitting a three-week high of $1,262.60 an ounce on Tuesday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.27% to 94.68 late Friday, but was still up 0.46% for the week.
The drop in the dollar came after reports showing that U.S. industrial production fell more than expected in March and consumer sentiment deteriorated slightly this month.
The University of Michigan said the preliminary reading of its consumer sentiment index came in at 89.7 in April, down from 91.0 in March and lower than the 92.0 reading forecast by economists.
Another report showed that U.S. industrial output fell 0.6% in March, worse than the 0.1% decline economists had expected.
The reports underlined the view that the Federal Reserve is likely to stick to a cautious approach on future interest rates increases.
Lower interest rates make the dollar less attractive to yield seeking investors. A stronger dollar tends to weigh on gold, which is denominated in the U.S. currency and becomes more expensive for many buyers when the dollar rises.
In the week ahead, the economic calendar is light, with the U.S. set to release housing sector data.
The European Central Bank will hold its monetary policy meeting on Thursday and the euro zone is to release data on private sector activity on Friday.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, April 18
New Zealand is to release data on consumer price inflation.
Canada is to report on foreign securities purchases.
Tuesday, April 19
The Reserve Bank of Australia is to publish the minutes of its latest monetary policy meeting, giving investors insight into how officials view the economy and their policy options.
In the euro zone, the ZEW Institute is to report on German economic sentiment.
The U.S. is to release reports on building permits and housing starts.
RBA Governor Glenn Stevens is to speak at an event in New York.
Bank of England Governor Mark Carney is to testify before the economic affairs committee in London.
Bank of Canada head Stephen Poloz is testify before the finance committee in Ottawa.
Wednesday, April 20
The U.K. is to publish its monthly employment report.
Canada is to release data on wholesale sales.
The U.S. is to report on existing home sales.
Thursday, April 21
The U.K. is to release data on retail sales.
The European Central Bank is to announce its monetary policy decision. The rate announcement will be followed by a post-policy meeting press conference with President Mario Draghi.
The U.S. is to release the weekly report on initial jobless claims and data on manufacturing activity in the Philadelphia region.
Friday, April 22
Markit is to publish its flash purchasing managers' index for the euro zone.
Canada is to round up the week with reports on inflation and retail sales.